A Chinese company has signed an agreement to lease an entire island in the Solomon Islands.
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The Solomons' Central Province made a "strategic cooperation agreement" on Tulagi island with the state-owned China Sam Enterprise Group for the development of the special economic zone.
The agreement with China Sam mentions developing a refinery on the island, but its potential for dual use as a Chinese military base is certain to raise concerns with the United States and Australia.
Recently, China and the Solomons officially established diplomatic relations after China persuaded the impoverished Pacific nation to sever ties with Taiwan and become its ally. Days later another Taiwan loyalist in the region, Kiribati, did likewise.
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