East Timor’s President, Jose Ramos-Horta, has denied any discussions about a Chinese military presence in his nation, despite Chinese state media claiming otherwise. In a media statement on September 29, Ramos-Horta emphasized that East Timor, also known as Timor Leste, does not pose a security threat to neighboring countries such as Australia and Indonesia. He assured that these countries can sleep at peace as East Timor is not a concern in terms of security.
This statement by President Ramos-Horta came after Chinese state media revealed that Beijing’s agreement with East Timor included military exchanges. Despite this, East Timor maintains a strong security cooperation with Australia, its principal aid provider. Canberra offers military and police advisors, along with patrol boats, to support East Timor’s security efforts.
China and East Timor announced on September 23 that they had upgraded their bilateral ties to a comprehensive strategic partnership. This move aims to strengthen energy policy exchange and satisfy East Timor’s desire for stronger links to major economies. The agreement came after Chinese leader Xi Jinping met East Timor’s Prime Minister Xanana Gusmao in Hangzhou, China. This partnership potentially gives China more influence in the region, as East Timor is located less than 700 kilometers (434 miles) from Darwin.
Part of the bilateral partnership involves joint oil and gas exploration between China and East Timor. Both countries have also committed to participating in the Belt and Road Initiative, which could open up opportunities for infrastructure investment.
China’s expanding influence in the Pacific region has raised concerns among the United States, Australia, and New Zealand. The Chinese Communist Party (CCP) has established relationships with smaller Pacific nations, including a security agreement with the Solomon Islands. Australia is responding to this growing threat by strengthening ties with its Pacific allies and providing aid, security, and development assistance.
East Timor relies on a $26 billion sovereign wealth fund called the Petroleum Fund to sustain its government. However, this fund is finite, and if the government does not find new sources of revenue, it could be depleted within the next decade. The Australian government is concerned about the potential bankruptcy of East Timor once the Petroleum Fund runs out. They are working with the Timorese government to develop a more sustainable economic model, with a key priority being the development of the Greater Sunrise gas field.
President Ramos-Horta is advocating for a gas pipeline from the Timor Sea reserves to directly link to East Timor, rather than routing it through Darwin in Australia. He has warned that if this proposal is not endorsed by Australia and Woodside Energy, East Timor may seek CCP support for the project, playing off China against Australia, an approach referred to as “The China Card.”