Port moresby: Papua New Guinea's decision to close Taiwan's trade office in Port Moresby is puzzling from a diplomatic standpoint, but it signals a coming expansion of its economic relationship with China, experts told Radio Free Asia.
According to Radio Free Asia, last month, PNG's Foreign Affairs Minister Justin Tkatchenko announced in an official statement the immediate cessation of operations and the formal closure of the physical presence of the Chinese Taipei Economics Office. This decision aligns with Port Moresby's unwavering commitment to honoring, respecting, and upholding Papua New Guinea's foundational One-China Policy, which corresponds with Beijing's view that Taiwan is an inalienable part of its territory.
The decision was confusing, Paul Barker, executive director of the PNG Institute of National Affairs, a Port Moresby-based think tank, told RFA. "One really wonders why one would take this action at this point," he said. PNG has always maintained its stance of being "friends to all and enemies to none" while choosing to chart its own path in the region, alongside its Pacific partners and ASEAN colleagues. Barker noted that PNG signed a mutual defense treaty with Australia last year and maintains defense arrangements with regional parties, including China, Indonesia, and the U.S.
PNG recognized the One-China Policy almost immediately after gaining independence but has also maintained ongoing trade, investment, and cultural engagement with Taiwan. This seems entirely reasonable, as even China maintains economic connections with Taiwan, Barker noted. PNG's One-China Policy differs from a similar policy held by the United States, which acknowledges Beijing's view but takes no official stance on Taiwan's sovereignty.
Taiwan's Ministry of Foreign Affairs strongly protested the closure of its office, vowing to continue operating it as normal. However, it was unclear to RFA how Taiwan intends to operate the office without recognition from the host government.
In response to the decision, Taiwan initiated a review of liquefied natural gas imports from PNG and decided to halt spot purchases. This prompted Beijing to announce it would increase its purchases of the commodity from the Pacific Island country. Taiwan's response follows a pattern of cutting ties with governments that downgrade its status, Jonah Bock, assistant director for research at the Alliance Futures Initiative, a Washington-based think tank, told RFA.
"It is important for Taiwan to maintain even informal ties with states that do not recognize it," Bock said. "But it is necessary to send a signal that these actions taken will not go unpunished. The audience is not just Port Moresby but every other country with ties to Taiwan."
Bock explained that the closure of Taiwan's office in PNG is part of a larger campaign to further isolate Taiwan. In the Pacific Islands, only three countries-Palau, the Marshall Islands, and Tuvalu-still recognize Taiwan, and none appear poised to change recognition soon. Recognition is only part of Beijing's objectives; it also seeks to eliminate Taiwan's remaining international space.
Bock noted that similar measures have been occurring in various areas of the Pacific, with Fiji having closed its office in Taipei in 2017 and revoking diplomatic privileges to Taiwan's office in Suva in 2018. PNG itself closed its trade office in Taipei in 2023, and Nauru directed all government officials to uphold the One-China Principle in all activities last year.
Chinese diplomats in the region are already working to push other countries to end their ties to Taiwan, Bock explained. "Short of unification, none of this stops. China will continue to aggressively pursue any action that reduces Taiwan's international space-its ethos of national rejuvenation relies on unification."
Beyond geopolitics and trade, Barker explained that the decision would affect more than just gas exports and trade. "Educational and cultural links are also strong, with scholarships and exchanges, and some ongoing development programs in agriculture and valued investment in PNG," he said. The cultural associations between Taiwan and its indigenous population, and PNG and the Pacific, trace back 6,000 years, with the dispersion of people from Taiwan and the origins of the Austronesian language.
Barker suggested that PNG should try to maintain some engagement with Taipei, which should not undermine its relationship with Beijing. However, Bock emphasized that economic incentives play a crucial role. "The move is to curry favor with the PRC, and the goal is vast sums of Chinese money," Bock said.
In April, Prime Minister James Marape visited China to explore increasing trade and investment. Subsequently, in May, the two countries signed an economic framework agreement, and in July, they held high-level discussions about the PNG-China Business Forum and Trade Expo in Guangzhou. In the months leading up to the closure, China and PNG laid the groundwork for a more extensive economic relationship. Closing the office is PNG's payment to ensure China delivers.