China props up Solomon Islands' budget with $20 million injection

Solomon Islands will prop up its government budget with a $20 million injection from China, the developing Pacific state said Tuesday, as Beijing looks to strengthen a strategic toehold in the region.

Prime Minister Jeremiah Manele announced the funding after talks with President Xi Jinping in Beijing, hailing China's "transformative" presence in one of the world's poorest nations.

China has also agreed to fund extensions at Solomon Islands' only international airport, Manele said, leading work on a crucial piece of national infrastructure.

Solomon Islands has become one of China's most vocal supporters in the South Pacific since abruptly severing diplomatic ties with Taiwan in 2019.

China has responded by building a major new stadium in the capital Honiara, state-of-the-art health facilities, cellphone towers, roads and more.

"Since the establishment of bilateral partnership with China five years ago, the relationship has grown from strength to strength with China assisting in transformative projects," said a statement issued by Manele's office on Tuesday.

Australia and the United States -- traditionally two of Solomon Islands' closest security partners -- have offered similar amounts of budgetary support in the past.

Manele's predecessor Manasseh Sogavare was full-throated in his backing of Beijing, orchestrating the rapid expansion of Chinese interests across the tropical archipelago.

Sogavare inked a secretive security deal with China in 2022 that set alarm bells ringing in Western capitals.

While Manele has signalled he is willing to re-engage with Canberra and Washington, he has also voiced a desire to deepen ties with China.