Overview:
Taiwan is reviewing its economic relationship with Papua New Guinea after Port Moresby ordered the immediate closure of Taipei’s representative office, raising the prospect of changes to major LNG trade and development cooperation. The move has drawn criticism from the United States, while China has welcomed PNG’s decision, highlighting growing strategic competition in the Pacific.
TAIPEI, 20 JULY 2026 (TAIPEI TIMES/CNA/REUTERS) — Taiwan is reassessing its economic ties with Papua New Guinea (PNG) after the Pacific nation on Wednesday unexpectedly ordered the immediate closure of Taipei’s representative office in Port Moresby, Ministry of Foreign Affairs Lin Chia-lung said Saturday.
The ministry convened a meeting to discuss potential responses, which included reviewing Taiwan’s liquefied natural gas (LNG) purchases from Papua New Guinea, Lin said, adding that the nation’s imports of about 1.2 million tonnes of LNG annually accounted for about one-third of the Pacific nation’s LNG exports and were a major source of revenue for the country.
In 2024, Papua New Guinea exported US$5.36 billion worth of LNG, making it the world’s ninth-largest LNG exporter.
Its top markets were Taiwan, Japan, China, South Korea and Malaysia, the Observatory of Economic Complexity said.
LNG accounts for more than 40 percent of the Pacific nation’s total exports, Papua New Guinea’s National Statistical Office data showed.
Taiwan’s technical missions in Papua New Guinea focused on agriculture and fisheries and have created jobs and contributed to economic development, Lin said.
Papua New Guinea Minister of Foreign Affairs Justin Tkatchenko on Wednesday said the government had ordered the immediate closure of Taiwan’s representative office, in line with the country’s commitment to its “one China” policy.
Taipei rejects Port Moresby’s unilateral decision and has lodged a protest and pledged to keep its office operating as normal, Lin said.
He attributed the decision to Beijing’s political and economic coercion.
The U.S Department of State said Washington was “deeply concerned” by Papua New Guinea’s decision and called it part of Beijing’s intimidation campaign.
Taiwan is a reliable democratic partner, and its relationships around the world provide “significant benefits” to the citizens of those countries, including Papua New Guinea, a department spokesperson said.
“This is yet another example of Beijing’s intimidation campaign against Taiwan and its supporters around the world, which undermines the sovereign decisions of countries choosing to partner with Taiwan and threatens international peace and prosperity,” they added.
Lin expressed his gratitude to the US for voicing support for Taiwan, while Vice President Hsiao Bi-khim said Taiwan faces an extremely difficult diplomatic situation because China is suppressing the nation “everywhere.”
Papua New Guinea’s Ministry of Foreign Affairs did not immediately respond to a request for comment.
A Chinese Ministry of Foreign Affairs spokesperson said that the government “highly commends” Papua New Guinea’s decision.
Taiwan’s representative office in Port Moresby was established in 1990 after a trade agreement was signed the previous year, despite the absence of formal diplomatic ties…. PACNEWS