Prime Minister James Marape has encouraged Chinese enterprises operating in the country to diversify their investment and partner local businesses to support the government’s downstream processing ambition and export finished products.
Prime Minister Marape said this at a Christmas dinner hosted by the Chinese Enterprises Association of PNG (CEA PNG), at the Hilton Hotel, in Port Moresby, last night (13/12/22).
He said major Chinese enterprises operating in PNG have contributed enormously to the development of the country in terms of infrastructure, employment, tax revenue both in construction and the retail sectors.
Prime Minister Marape said PNG and China have a strong trade and bilateral relationship and China is one of PNG’s major investors, in fact the second trading partner in the Pacific region with PNG also exporting raw materials and mineral resources.
He said for the Chinese businesses, they have a market made up of 1.4 billion people back in China at their fingertips and encouraged them to go into downstream processing and export finished products to Asian markets.
“The reason why I am making this statement is simple. You have been here in PNG longer and I encourage you, please do not pack up and leave.
“Please diversify your businesses and help incubate the other local SMEs and bring them up with you and they become your project partners and project security.
“We urge you to pay your taxes and your dues, follow the laws of our country, produce and export more to your own country China as well as the Asian market place and the world because we have strategic links to all markets that PNG is connected with,’’ said Prime Minister Marape.
He also thanked the Chinese enterprises in PNG for their service and for contributing to the development of the country by creating employment, building infrastructure and promoting local spin off businesses.
“To all the Chinese enterprises who are all here tonight, thank you all for your services to Papua New Guinea.
“In the last three years when we took office most of your businesses know how the backlog of claims and payments for the businesses who won contracts was piling up and we were trying to clean those up.
“The previous government which I was part of issued contracts and never honoured them or the state components were never paid up so we have tried to resolve these issues in the last three years, we have been in government.
“Consequently, we have been supporting businesses in our country with no discrimination, whether you are an Asian business, Western business or Papua New Guinean business, so long as you operate within your space.
“For foreign businesses, we have kept our limits. That is, anything K10 Million and above, is open for anyone to bid for. For any business opportunity below 10 Million, it will be reserved for local PNG businesses and SMEs only to bid for.
“I want to thank the Chinese businesses who have been operating in PNG and have been bidding for some of our PNG Government funded projects, where some have been successful and some have not.
“For those who have not been successful, my government has issued contracts with no bias and or discrimination based on the tenders that have come through and we are starting to ensure their dues are paid,’’ he said.
Prime Minister Marape also said Chinese firms are starting to feature prominently in some of the government projects and contracts that the government has been giving out or tendering.
“I want you to remain focused at work in my country and I kindly urge you to incubate local Small to Medium Enterprises SMEs with you.
“They are your security and they are a combined security to your investment and businesses because when the locals are engaged, they are happy, you are happy and I am also happy with it.
“Keep on maintaining your business address here in PNG, keep supporting our local SME, keep on obeying our laws, as you have been, whilst doing businesses with our government and private sector.
‘We will be fair to everyone with no form of discrimination as Christians should be. Being friends to all, we will not be selective or discriminatory,’’ he said.
The Prime Minister informed the Chinese enterprises that they are in fact operating in a fair environment.
“So therefore, any Chinese investor, investment or business in our country under my watch or any other watch into the future will not experience any form of indiscrimination whatsoever.
“You are operating in a fair place and in fact our own history with the Chinese investors and based enterprises date back, over a hundred years.
The dinner was hosted by the Chinese Enterprises Association of PNG (CEAPNG). The Association is made of many of the major Chinese owned and based businesses in the construction, mining and retail sector, who are operating in the country.
Prime Minister Marape was graced by the Chinese Ambassador H.E Zeng Fanhua and the CEA PNG Chairman Wang Hongming.
Mr Marape also acknowledged the fact that PNG has a ‘friends to all, enemy to none’ foreign policy agenda, which covers both trade and investment, bilateral and multilateral relations PNG has with China and other countries and will be fair to all.
PNG recognizes the ‘One-China Policy’ and will continue to do so but the government will make its own decisions to promote investment as a sovereign and independent nation.