As far as the size of population and territory is concerned, Papua New Guinea (PNG) is the largest island country in the South Pacific. A more than one year turbulent political situation ended with a general election which is largely and smoothly held in 2012 and a new legislature and cabinet was formed. In recent ten years, the PNG economy grew rapidly. People's living standard was increased and price and employment were largely stable. The PNG is endowed with abundant mineral, forest and fishing resources and it is therefore very attractive to many outside investors. As a member of British Commonwealth, the PNG maintains close relations with Australia and other western countries. Under the background of American's return to the Asia-Pacific, the PNG and other pacific island countries are more highly appreciated by the United States for their strategic position. Meanwhile, the relations between China and PNG developed rapidly in recent years and more potential is yet to be discovered. It is believed that we should pay more attention to this country with a comprehensive view to have more dynamic relations with it. <<