East Timor, Asia's newest nation, finds itself entangled in geopolitical competition between the West and China, in particular over the development of offshore gas reserves.
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00:00This is Delhi, the capital of East Timor, also known as Timor-Leste, a small nation
00:06of 1.3 million people in Southeast Asia.
00:10East Timor has come a long way since it gained independence in 2002 from a violent two-decade
00:15long occupation by Indonesia.
00:18But the geopolitical face-off between China and the West is posing new challenges for
00:22Asia's youngest nation.
00:25China has stood by East Timor, supporting the resistance movement that fought against
00:29Indonesian occupation.
00:31In the recent years, Beijing has helped build the presidential palace in Delhi and other
00:36official buildings.
00:38The Timorese government has faced criticism over how the contracts were awarded.
00:43But the president, Jose Ramos Horta, rejects suggestions of undue influence.
00:48So it's not like all China helping us, no.
00:54We helping them in the extent that we give them contracts, but contracts that they bid
01:02under international rules.
01:07East Timor's economy relies heavily on its fossil fuel reserves.
01:10But despite this wealth, as much as 40 percent of the country's population lives in poverty.
01:17And the nation may even run out of funds to extract its oil in the next 10 to 15 years.
01:23East Timor wants to develop natural gas reserves in an offshore project called the Greater
01:28Sunrise Gas Field.
01:30But for this, it needs foreign investment.
01:34The project has been stalled over a disagreement with Australia, which shares the right to
01:39develop the field.
01:41But East Timor's president believes a breakthrough is in the offing.
01:45Soon we will sign an agreement with Australia on the development of Greater Sunrise.
01:51What the nature of the agreement, I don't know.
01:53But a decision will be made to develop this big gas field.
01:59Beijing has also expressed willingness to fund the Greater Sunrise project.
02:03But experts have cautioned Delhi about accepting Chinese financial support.
02:07They fear East Timor could become another developing country to become saddled with
02:11unsustainable levels of debt as a result of China's investment in infrastructure, what
02:17Beijing's critics have called debt-trap diplomacy.
02:22Last September, East Timor signed a strategic partnership agreement with China, a move that
02:27has raised alarms in Western capitals.
02:31President Ramos Horta has confirmed holding talks with Chinese state-owned and private
02:35companies to invest in the gas project.
02:38Meanwhile, Australia has indicated it would give East Timor a big chunk of the revenue
02:42from the project to keep Delhi away from Beijing.
02:46Now, all eyes are on the agreement Delhi is negotiating with Canberra.
02:51As East Timor pins its economic future on the Greater Sunrise gas field, Asia's youngest
02:56nation looks to see how it can extract the best deal for itself without getting pinched
03:00in the great power rivalry between China and the West.
03:04This is James Lin and Adil Brar for Taiwan Plus.