The Australian government is being urged to engage closely with Papua New Guinea as China makes its move on the island nation.

A Chinese company has proposed the $39 billion construction of ‘New Daru City’ in the Torres Strait, just 200km from the Australian coast.

Chris Smith told Jim Wilson there can only be political motivations for the development in what is known to be a poor area for fishing.

“This is the Chinese government saying ‘we can toy with Australia’ … they are just sticking their noses up at us and saying ‘we are going to intimidate you’.

“We need to wake up to ourselves.”

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Deakin University international relations expert Professor Greg Barton told Jim concern is “certainly” warranted, with China playing the long game across Asia and Melanesia.

The move will strengthen China commercially, and potentially militarily in the future, he said.

“They’re taking the chance now to expand, and put their foot down and to seize opportunities, knowing that there’s not many people who are going to be in a position to refuse them.”

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