Dili, March 19, 2026 (Lusa) – A recent study highlights how Timor-Leste has been seeking more investment from China as a strategy for economic development and to overcome geopolitical isolation.
The study, conducted by William Vogt, senior policy executive at the think-tank The Digital Economist, alongside Guilan Massoud-Moghaddam and Robert Miles Chong from Georgetown University, explores China’s growing presence in Timor-Leste and its impact on the nation's technological advancement.
"China’s presence in Timor-Leste comes at a time when three other nations, India, Australia and Portugal, are providing aid in information and communication technologies, with Australia being the most active contributor”, the study noted.
According to the authors, China’s technological foreign policy is designed to challenge Australian geopolitical interests in Southeast Asia, investing heavily in areas essential to Timor-Leste’s digital development, including electrification and connectivity.
Timor-Leste has sought to integrate fully into the Association of Southeast Asian Nations (ASEAN), although it faces scrutiny due to economic weaknesses, with “around 42% of Timorese living below the poverty line and the country’s sovereign wealth fund in decline”.
According to the authors, China’s growing presence in key sectors, such as telecommunications, energy, agriculture and defence, suggests that Dili is seeking to overcome its geopolitical isolation and build a functioning digital economy.
“China is well-positioned to compete, offering the expertise of national champions such as Huawei, alongside other energy and technology suppliers,” they said.
China Nuclear Industry 22nd Construction Company, for example, has been awarded a $360 million (€313.6 million) contract to upgrade Timor-Leste’s electricity network, whilst Huawei is establishing itself as a central provider of internet infrastructure.
Australia remains a key partner, funding fibre-optic cables that replace Timor-Leste’s reliance on satellite connections; however, Beijing has been making inroads in sensitive areas, supporting Radio and Television of Timor-Leste in digitising content and promoting a digital terrestrial television transmission system.
"China is increasing Timorese access to these broadcasts, creating a potential destination for Chinese propaganda," Vogt, Massoud-Moghaddam, and Chong warn.
The study further reveals that Sino-Timorese cooperation is not limited to the civil sector, as in July 2024, the two countries agreed to strengthen military exchanges and invest in areas such as personnel training, equipment technology, and joint exercises.
For the authors, this rapprochement reflects a significant shift in Timorese foreign policy, with President José Ramos-Horta increasingly aligning with Chinese interests.
"Dili may be persuaded to continue deepening its relations with Beijing as a strategy for continued economic development and for overcoming geopolitical isolation", the study added.
In addition to supporting the Timorese Navy and integrating the country into its Maritime Silk Road, Beijing has invested in agricultural technology, introducing hybrid rice and methods such as Juncao technology, applied in digitally supported farming zones.
According to the study, funding is frequently channelled through the China Exim Bank, allowing Dili to access credit for public works and digital projects; this partnership is seen as an alternative to the limitations of domestic capital, which remains heavily dependent on natural resource revenues.
At the same time, e-commerce is seen as a path toward modern economic development, and Dili could reap the rewards of integrating into the regional digital market by utilising Chinese platforms and products.
NCM/ MYAL // AYLS
Lusa
