The Chinese Association of Solomon Islands has distanced itself from the ongoing dispute between Chinese-owned businesses in the country.
This comes following claims a leading hardware in Honiara was dissatisfied with BNBM Hardware and Home Center for lowering prices on hardware materials and goods to attract customers.
It was revealed BNBM Hardware was selling a bag of 40kg cement for only $30.00 which ran out stock quickly.
Currently few hardwares are selling cement for around $60.00 per bag.
BNBM, a Chinese-owned company with operations in Papua New Guinea and Vanuatu, opened its store in Honiara at the end of last month. The store has quickly garnered attention and praise from the local community for its high standards and modern layout.
It also specialises in cement production and ready-mix concretes.
One local customer commented, “This is the change the Solomon Islands need,” reflecting the excitement surrounding the store’s arrival.
While many welcome the competition, concerns have been raised about the potential impact on smaller, locally-owned hardware and home appliance businesses, which may struggle to compete with a large, well-funded entity like BNBM.
Association President Henry Kwan clarified that the issue is between individual businesses and has no connection to the Body.
“In Chinese culture, business competition is normal and healthy,” Kwan said, emphasizing that the disagreement does not involve or reflect the wider Chinese community in the Solomon Islands.
Reports have surfaced of significant policy changes following unrest within the ruling GNUT coalition. Insiders have revealed that Solomon Islands People First Party is engaging in secret talks, through intermediaries, with the Opposition over the recent Motion of No Confidence (MNOC) dispute.
On December 23, 2024, 16 senior ministers and backbench members signed a 10-point Memorandum of Demands (MoD), calling for, among other measures, a Cabinet reshuffle by Prime Minister Jeremiah Manele.
One major policy focus is addressing the ongoing cement price war within the hardware industry, where established and new Chinese businesses are competing aggressively. The government plans to abolish the Preferred Supplier Arrangement (PSA), which has been a significant point of contention.
Under the proposed changes, hardware suppliers will bid through the Central Tender Board (CTB), which is expected to promote fairness and transparency.
“I like the move. It is very good on the part of the government to do that,” said one businessman.
Currently, 69 hardware businesses hold PSA status, but it remains unclear when the changes will take effect.
Another potential policy change involves the review of Leroy Wharf, a privately owned port, amid security concerns.
“There seems to be internal conflict among those operating suffrage wharves, including Leroy Wharf,” Prime Minister Manele stated, adding that the government must make decisions that ensure fairness while safeguarding trade and national security.
The Prime Minister emphasized the importance of protecting the international status of Solomon Ports, which operates in Honiara and Noro.
“Privately owned ports can only be designated as suffrage, subject to assessment by Customs and Excise,” Manele said.
Leroy Wharf Port, located in Lungga, is owned by Lee Kwok Kuen.
By Eddie Osifelo
Solomon Star, Honiara
Photo caption: Henry Kwan of Chinese Association, left, hands over sets of hand gloves to officials of Prime Minister Office in 2023.
