The Solomon Islands has secured a $66 million loan from China to build 161 mobile towers built and supplied by Huawei.

Under the terms of the deal, the island nation will receive a 20-year concessional loan from the state-linked Exim Bank of China. The government of the Solomon Islands called it “a historical financial partnership” between the two countries.

Western officials believe Beijing could use the security pact to build a military base in the Solomon Islands....