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 Chinese Taipei Economics Office. This move aligns with Port Moresby's unwavering commitment to honoring, respecting, and upholding Papua New Guinea's foundational One-China Policy, which is consistent with Beijing's One-China Principle, stating 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 traditionally maintained a stance of being friends to all and enemies to none, charting its path in collaboration with its Pacific partners and ASEAN colleagues. Barker noted that PNG last year signed a mutual defense treaty with Australia and has defense arrangements with other regional parties, including China, Indonesia, and the U.S.

PNG recognized the One-China Policy almost immediately after independence but has continued trade, investment, and cultural engagements with Taiwan. This policy mirrors similar arrangements worldwide, including the U.S., which acknowledges Beijing's view without taking an official stance on Taiwan's sovereignty. However, this will no longer be the case in Papua New Guinea, according to Tkatchenko's statement.

Taiwan's Ministry of Foreign Affairs strongly protested the closure, vowing to continue to operate its office as normal. It was not immediately clear to RFA what it would mean to operate the office as normal when it is not recognized by the host government.

In response, Taiwan initiated a review of liquefied natural gas imports from PNG and decided to halt spot purchases, prompting Beijing to announce it would increase its purchases 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, told RFA.

Bock pointed out that the closure was 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, but Beijing seeks to eliminate Taiwan's remaining international space, as seen with the closing of the Taipei Trade Office in PNG.

Bock noted similar measures occurring in the Pacific, with Fiji closing 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 last year.

Beyond geopolitics and trade, Barker explained that the decision affects more than gas exports. Educational and cultural links, with scholarships, exchanges, and ongoing development programs, are also impacted. The cultural associations between Taiwan and PNG's indigenous population go far back, with the dispersion of people and the origins of the Austronesian language stemming from Taiwan over 6,000 years ago.

While Barker emphasized maintaining some engagement with Taipei, Bock suggested that the move aims to curry favor with the PRC, with vast sums of Chinese money as an incentive. Prime Minister James Marape's visit to China earlier this year, the signing of an economic framework agreement, and high-level discussions set the stage for an expanded economic relationship. The closure of Taiwan's office appears to be PNG's payment to ensure China delivers on its promises.