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The Republic of Vanuatu and the People's Republic of China (PRC) established official diplomatic relations on March 26, 1982. China established an embassy in Vanuatu in 1989, while Vanuatu established an honorary consulate in China in 1999; it officially became an embassy in 2005. The current Ambassador of China in Vanuatu is Liu Quan. The current Ambassador of Vanuatu in China is former Minister of Finance Willie Jimmy.
The Chinese government officially considers that Vanuatu and China "have made tireless efforts and cooperation endeavors to promote and further strengthen friendship and cooperation for the benefit of [the two countries'] peoples and nations", and that China and Vanuatu "have smooth cooperation in economic, trade, agricultural, tourism, sports and other fields".
For its part, the government of Vanuatu officially considers that "China and Vanuatu have enjoyed a vibrant and long lasting relationship based on mutual understanding, friendship and genuine cooperation", and that "Vanuatu's relations with China and the adherence to the One-China policy are one of the fundamental pillars of Vanuatu's foreign policy".
In June 2009, Vanuatu's ambassador to China, Willie Jimmy, "call[ed] [...] for China to have a foot firmly planted in the Pacific through Port Vila", a comment which -the Vanuatu Daily Post remarked- "no doubt caused ruffled feathers among other foreign diplomatic partners".
Oceania is, to the People's Republic of China and the Republic of China (Taiwan), a stage for continuous diplomatic competition. Eight states in Oceania recognise the PRC, and six recognise the ROC. These numbers fluctuate as Pacific Island nations re-evaluate their foreign policies, and occasionally shift diplomatic recognition between Beijing and Taipei. In keeping with the "One China" policy, it is not possible for any country to maintain official diplomatic relations with "both Chinas", and this "either/or" factor has resulted in the PRC and the ROC actively courting diplomatic favours from small Pacific nations. In 2003, the People's Republic of China announced it intended to enhance its diplomatic ties with the Pacific Islands Forum, and increase the economic aid package it provided to that organisation. At the same time, PRC delegate Zhou Whenzhong added: "[T]he PIF should refrain from any exchanges of an official nature or dialogue partnership of any form with Taiwan". In 2006, Chinese Premier Wen Jiabao announced that the PRC would increase its economic cooperation with Pacific Island States. The PRC would provide more economic aid, abolish tariffs for exports from the Pacific's least developed countries, annul the debt of those countries, distribute free anti-malaria medicines, and provide training for two thousand Pacific Islander government officials and technical staff. Also in 2006, Wen became the first Chinese premier to visit the Pacific islands, which the Taipei Times described as "a longtime diplomatic battleground for China and Taiwan". Similarly, according to Ron Crocombe, Professor of Pacific Studies at the University of the South Pacific, "There have been more Pacific Islands minister visits to China than to any other country".