China is leasing an entire Pacific island. Its residents are shocked.

Under a secretive deal signed last month with a provincial government in the South Pacific nation, a Beijing-based company with close ties to the Chinese Communist Party has secured exclusive development rights for the entire island and its surroundings.

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The lease agreement has shocked Tulagi residents and alarmed American officials who see the island chains of the South Pacific as crucial to keeping China in check and protecting important sea routes. It is the latest example of China using promises of prosperity to pursue its global aspirations — often by funneling money to governments and investing in local infrastructure projects that critics call debt traps for developing nations.

“The geography tells you that this is a good location,” said Anne-Marie Brady, a China scholar at the University of Canterbury in Christchurch, New Zealand. “China is expanding its military assets into the South Pacific and is looking for friendly ports and friendly airfields just like other rising powers before them.”

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