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🇳🇿 New Zealand /Economy & Trade

Taiwan reassesses economic ties with Papua New Guinea after office closure

From RNZ Pacific · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources Outcome reported
  • Taiwan is reassessing its economic ties with Papua New Guinea (PNG) after PNG closed Taiwan's representative office.
  • Taiwan's LNG purchases from PNG, accounting for about a third of PNG's exports, are a major revenue source.
  • The US expressed concern, viewing PNG's decision as part of Beijing's intimidation tactics, while China welcomed the move.

Taiwan is undertaking a review of its economic relationship with Papua New Guinea (PNG) following the closure of Taiwan's representative office in the country. Taiwanese officials reported being blindsided by the decision, prompting the Ministry of Foreign Affairs to convene a meeting to discuss potential responses.

The announcement was a formality for a decision made some time ago.

— Justin TkatchenkoPNG's foreign minister commented on the timing of the decision to close Taiwan's office.

A significant point of contention is Taiwan's liquefied natural gas (LNG) purchases from PNG. These imports, totaling approximately 1.2 million tonnes annually, represent about one-third of PNG's total LNG exports and constitute a major source of revenue for the nation. The review includes reassessing these purchases as a potential response to PNG's action.

PNG's foreign minister, Justin Tkatchenko, stated that the decision to close Taiwan's representation aligns with PNG's adherence to the One China policy. He described the announcement as a formality for a decision made some time ago. China's Ministry of Foreign Affairs welcomed the move, with a spokesperson commending PNG's decision.

The government 'highly commends' PNG's decision.

— Chinese Ministry of Foreign Affairs spokespersonChina's Foreign Ministry welcomed Papua New Guinea's move.

Conversely, the United States Department of State expressed "deep concern" over PNG's decision. Washington views this action as part of Beijing's broader campaign of intimidation. The differing international reactions highlight the geopolitical sensitivities surrounding Taiwan's diplomatic status and China's growing influence in the Pacific region.

Washington was 'deeply concerned' by PNG's decision and called it part of Beijing's intimidation campaign.

— US Department of StateThe US reacted to PNG's decision, framing it as Chinese intimidation.
DistantNews Editorial

Originally published by RNZ Pacific. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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