Papua New Guinea Closes Taiwan's Economic Office Amidst China's Growing Influence

Read The Diplomat, Know The Asia-Pacific Taiwan’s diplomatic space is shrinking along a vital Pacific energy route. Taiwan’s Economic and Cultural Office in Papua New Guinea hands over a donation of 500 kg of rice to the Catholic Archdiocese of Port Moresby, Dec. 20, 2021. On July 16, 2026, the foreign minister of Papua New Guinea (PNG), Justin Tkatchenko, abruptly announced the closure of Taiwan’s economic office in Port Moresby. “The physical presence of Chinese Taipei will no longer be recognized or required within the jurisdiction of Papua New Guinea,” the minister said in a statement posted online, using an alternative name for Taiwan. China’s Foreign Ministry spokesperson, Lin Jian, quickly welcomed the decision, reinforcing perceptions that Beijing’s growing influence in the Pacific shaped the move. Taiwan’s Ministry of Foreign Affairs immediately rejected the announcement as a unilateral decision made without prior consultation. Taipei also announced that it was reassessing bilateral cooperation and economic exchanges with PNG and had briefed like-minded partners on the dispute. The conflicting positions underscore the uncertainty surrounding Taiwan’s diplomatic presence in the Pacific: while PNG has declared the office closed, Taiwan has refused to recognize the decision as settled. The episode illustrates how quickly political access can be curtailed, and how contested and fragile Taiwan’s informal diplomatic relationships in the region have become. At first glance, the closure appears to be another step in Beijing’s longstanding campaign to constrict Taiwan’s international space. Geographically, however, its significance extends well beyond cross-strait diplomacy. Located immediately north of Australia, Papua New Guinea is both a strategic gateway between Australasia and East Asia and a critical node along maritime routes carrying energy supplies toward Taiwan. The decision therefore foreshadows a broader and increasingly persistent contest between China and regional powers over political access, strategic infrastructure, and maritime corridors in the Pacific. PNG plays an important role in Taiwan’s energy security and supply diversification. Developed in partnership with U.S. and Australian companies, PNG’s liquefied natural gas (LNG) sector supplies approximately 1.2 million tonnes per annum to Taiwan, making the country one of Taiwan’s important LNG suppliers, alongside Australia, Qatar, and the United States. In 2025, Australia supplied about 38 percent of Taiwan’s LNG imports, while PNG accounted for approximately 6 percent. Together, the two countries provided roughly 44 percent of Taiwan’s LNG, meaning that more than two-fifths of its imports came from suppliers south of the equator. LNG shipments from the terminal near Port Moresby generally travel northeast through the Coral Sea and western Pacific before approaching Taiwan via the Philippine Sea. Unlike Qatari and other Middle Eastern supplies, which must transit the Strait of Hormuz and often the Malacca Strait or South China Sea, the PNG route avoids several major maritime chokepoints and offers Taiwan a more resilient energy corridor. Taiwan’s diplomatic exclusion from PNG could gradually weaken its maritime and energy resilience. Although the closure of Taiwan’s economic office is unlikely to disrupt existing LNG contracts or nullify commercial obligations, it reduces Taipei’s ability to maintain government contacts, support commercial relationships, coordinate during emergencies, and protect its interests in a strategically located Pacific country. The PNG-Taiwan LNG route is not merely bilateral in significance. It forms part of a wider Pacific network of energy sea lines of communication linking the Coral Sea, the Bismarck and Solomon Seas, the Philippine Sea, and the approaches to the First and Second Island Chains. In a South China Sea crisis or Taiwan contingency, these waters could provide an alternative route for commercial shipping and military logistics. The same maritime space is also vital to digital connectivity, undersea infrastructure, and regional military mobility. China’s expanding presence across key sectors in PNG adds another layer of strategic concern. Chinese-linked projects include Lae Port, a proposed fisheries development near the Torres Strait, multiple airport upgrades, the Port Moresby government data center, electronic government networks, the National Broadband Transmission Network, the Kumul Submarine Cable, digital broadcasting systems, and power-transmission projects. Individually, these projects do not amount to Chinese control over PNG’s policymaking. Collectively, however, they may create long-term technical dependencies, access relationships, and logistical advantages that could provide Beijing with additional leverage in a regional crisis and complicate the freedom of action of Taiwan and its partners. Once a crisis begins, rebuilding relationships and alternative networks will be far more difficult than protecting the existing ones today. The U.S., Australia, Japan, the Philippines, Taiwan, and Pacific Island countries should therefore treat diplomatic representation, energy coordination, port transparency, communications infrastructure, maritime domain awareness, and the preservation of a free and open western Pacific corridor as interconnected elements of regional resilience. China apparently succeeded in convincing PNG to close Taiwan’s trade office. Taiwan’s most secure trans-Pacific energy corridor would face a more direct threat if Beijing similarly succeeded in pressuring PNG to obstruct Taiwan-bound LNG shipments. Although the Australia-PNG Pukpuk Treaty requires consultation over third-party activities that could affect its implementation, it does not necessarily prohibit all forms of cooperation between PNG and China. The Pukpuk Treaty anchors PNG’s external defense relationship with Australia, but strategic competition will continue in domestic security, technology, infrastructure, policing, and political influence. PNG’s abrupt and unilateral closure of Taiwan’s economic office demonstrates that the contest between China and other regional actors continues to unfold well beyond the military domain. Subscribe today and join thousands of diplomats, analysts, policy professionals and business readers who rely on The Diplomat for expert Asia-Pacific coverage. Get unlimited access to in-depth analysis you won't find anywhere else, from South China Sea tensions to ASEAN diplomacy to India-Pakistan relations. More than 5,000 articles a year. Already have an account? Log in. Domingo I-Kwei Yang is a researcher with the Coastwatcher 2.0 Project, and is based at Institute for National Defence and Security Research (INDSR), Taiwan. He is a specialist on China’s Belt and Road Initiative, China and the Global South, Technology and Geopolitics. Get briefed on the story of the week, and developing stories to watch across the Asia-Pacifi