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Financial Times
Financial Times
Business
Kathrin Hille in Taipei

The Chinese companies trying to buy strategic islands

Three years ago, Xu Changyu made his first attempt to get his hands on an island in the South Pacific. The vice-president of China Sam Enterprise Group quietly negotiated a 75-year lease on Tulagi, an islet with a natural deepwater harbour in the Solomon Islands.

The deal was blocked after the attorney-general declared it unlawful, but not without triggering suspicion among the public and the country’s traditional western allies that China was looking to build a military base in a spot that once hosted the British, Japanese and US navies.

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