Beijing has denied paying Pacific nation Nauru to switch diplomatic ties from Taiwan.
In a surprise announcement, just two days after the Taiwan presidential election, Nauru declared it was switching diplomatic ties to the democratic island, while declaring in a statement that Taiwan was “an inalienable part of China’s territory.”
Beijing claims the self-governing Taiwan as its territory.
Amid the fallout of the decision, Taiwan’s semi-official Central News Agency—quoting an unnamed Taiwanese official—blamed the sudden decision on Nauru’s displeasure at a shortfall of $125 million resulting from the Australian government reducing activity at its asylum seeker processing centre on the island.
‘No Ulterior Motive, No Financial Incentive’: CCP
Beijing’s ambassador to Australia Xiao Qian, in comments to reporters, denied the Chinese Communist Party (CCP) had offered any financial incentive to Nauru, saying it was “purely independent” and its decision was due to “the overwhelming, increasing consensus in the international community that in this world, there’s only one China and Taiwan is part of China.”He claimed the CCP had “no ulterior motive” and that Australian officials were made aware of what Beijing was doing in the region, claiming it was a “transparent ... friendly kind of relationship.”
In Beijing, a spokeswoman for the CCP’s Foreign Ministry was typically opaque when questioned on the issue, refusing to reveal how much money it had taken to get Nauru to switch allegiance.
“This is a choice made independently by Nauru as a sovereign country. It shows that the one-China principle is where global opinion trends and where the arc of history bends,” she said.
Beijing Steps in to Plug Financial Hole: Report Claims
Taiwan’s foreign ministry has expressed “deep regret” at Nauru’s decision, and accused Beijing of retaliating against the accession of new President William Lai, saying it represented “a direct challenge to the international order.”The Central News Agency report also said Taiwan’s government felt it could not afford to pay the shortfall from Australia’s funding, and did not respond to Nauru’s request for funds. In the meantime, Beijing agreed to step in with financial incentives, allowing it to “ambush” Taiwan.
“For many years, Taiwan has promoted cooperation projects in Nauru that have benefited people’s livelihoods and assisted Nauru’s overall development. However, Nauru has been lured by China’s enticements and disregarded the long-term assistance and friendship from Taiwan, conducting negotiations with China on the establishment of diplomatic relations,” it said.
Diplomatic Failure: Expert
Mark Harrison, a senior lecturer in Chinese Studies at the University of Tasmania, told the Australian Financial Review that Nauru’s decision reflected badly on the Albanese Labor government’s efforts to deal with the rising CCP influence in the Pacific.“Questions can be asked about how effective government diplomacy has been in the Pacific given the implications for regional security,” he said.
Australian Government Knew of Nauru’s Decision Beforehand
Although Australia had been advised to expect a reaction from Beijing to the Taiwanese election, it was thought this could come through in the form of sanctions or military drills.Pacific Minister Pat Conroy has also said Nauru had given Canberra advance notice of its announcement, noting the decision was “not a shock” and that Nauru, as a sovereign nation, had an absolute right to make the deal.
Australia has also tried to downplay the effect of the reduction in funding.
Before the recent reduction in numbers, the amount was $458 million; the Australian government says $350 million is now budgeted to keep it open, even though it is now mostly empty.
Mr. Conroy also said “no conversations” have been had on funding to keep diplomatic ties with Taiwan.
Nauru was once one of the wealthiest Pacific countries with the highest GDP per capita in the world due to lucrative phosphate mining.
The government has since attempted to find new ways to generate revenue, including through offshore banking and leasing premises to Australia for offshore asylum seeker processing.
Full Disclosure Demanded by Opposition
Meanwhile, opposition foreign affairs spokesman Simon Birmingham called on the Labor government to explain exactly what had occurred.“If, as reports suggest, issues around funding attached to the Australian immigration detention facility were a key factor, it is important that the Albanese government be transparent about any discussions it had on that issue with officials from Nauru and its knowledge of any payments sought or made by China to Nauru,” Senator Birmingham said.
“It is relevant to Australia’s security interests in the Pacific and warrants appropriate disclosure.”
Mr. Conroy did not respond directly, but said that the Albanese government had overall made a “significant improvement” in Pacific relations.
The CCP has been successful in changing the allegiance of many of Taiwan’s allies in the Pacific, with Solomon Islands and Kiribati both recognising Beijing’s claim to Taiwan in 2019. Only the Marshall Islands, Palau, and Tuvalu continue to recognise Taiwan in the region.
Nauru’s move is particularly stinging for Australia, which is the largest donor of foreign aid to the island, budgeting $46.1 million this financial year.
The island nation also uses the Australian dollar as its currency, and is the only country that has Australian Rules football as its national sport.
