Deterring China in the Pacific requires better fisheries management

by Patrick Hynes, ConservAmerica fellow

Congress delivered a major blow to Beijing’s ambitions in the Pacific last week by officially recommitting to another 20 years of support for Micronesia, Palau, and the Marshall Islands.

Collectively known as the Freely Associated States (FAS), these three nations are uniquely tied to the United States through the Compacts of Free Association (COFAs), which grants us military jurisdiction over a vital region in the Pacific in exchange for economic assistance and citizenship privileges. 

However, as evidenced during the contentious COFAs renegotiations, our lack of attention to the region’s primary natural resource – tuna – has opened the door for China to exert political influence through familiar methods of economic coercion. Going forward, our efforts should aim to help the economically stagnant FAS nations prosper by regaining agency over their abundant fish resources.

Under the guise of the pleasant-sounding Belt-and-Road Initiative (BRI), China targets corruptible countries for access to natural resources with minimal oversight. Securing critical mineral supply chains through the BRI has propelled China to dominate clean technology manufacturing. However, securing a stable fish supply is equally vital due to its importance in the Chinese diet. The Maritime Pearl Road, an offshoot of the BRI, extends China's reach into the Pacific, where its extensive fishing fleet notoriously engages in overfishing and illegal practices that threaten the health of marine ecosystems. 

Beijing provides plenty of incentives for its fleet to plunder fish stocks worldwide. Generous subsidies give its fleet a significant competitive advantage in foreign waters by driving small-scale businesses out of their home markets. Lack of enforcement at home and abroad allows systemic underreporting of fleet size and catch totals facilitated by state-owned “carrier ships”. And BRI diplomacy secures access to waters where authorities are bribed to look the other way.

Micronesia was one of ten countries China unsuccessfully tried to lure into the so-called “Common Development Vision” that, in the words of Micronesia’s former President David Panuelo, “seeks Chinese economic control of our collective fisheries.” In leaked emails, Panuelo unveiled numerous examples of blatant “political warfare” that has created a culture of rampant corruption, including Chinese tuna fishing executives bribing officials with private jet access.

Displaying its willingness to weaponize market power, Beijing sent Palau into an economic crisis by banning tourists from going there and recently vowed to “fill every hotel room” in exchange for allegiance against Taiwan. It also has firm control over the Marshall Islands’ fishing sector, where most fishing vessels are either China-flagged or ultimately owned by Chinese state-owned conglomerates. Pew Research Center estimates that China spent nearly $19 million to subsidize 37 ships in Marshallese waters in 2018.

The U.S. approach to the FAS has been neglectful, at best. The United States Institute for Peace describes our engagement as “a sprawling and decentralized set of bureaucratic activities that undermine US national security interests and weaken the bilateral relationships” while FAS leaders plea for support in policy priorities such as “strengthened oversight and economic development of key sectors such as fisheries.”

This must start with rooting out the burgeoning corruption and stepping up enforcement at sea. As CSIS argued, the next era of FAS diplomacy must elevate the U.S. Coast Guard’s role in combating illegal fishing in collaboration with local authorities. 

Next, we need to boost incentives for private investment in fisheries. Fortunately, The Nature Conservancy (TNC) recently initiated a model worth replicating. In 2021, it launched a joint venture with the Marshall Islands called Pacific Island Tuna, leveraging its innovative monitoring strategies to establish a fully verified, sustainable supply chain of Marshallese tuna directly to Walmart stores in America. Vessels that adhere to the stringent requirements are granted the exclusive opportunity to conduct business with the most profitable company in the world. 

TNC is also helping Palau recalibrate its overly aggressive fishing moratorium as the nation tries to balance preservation and sustainable fishing. Building relationships with each country based on their desires is a winning strategy. 

Finally, the U.S. must also use diplomatic levers to accelerate reforms to the broken global fishing system. Negotiations to end harmful fishery subsidies have dragged on for over two decades at the World Trade Organization as China’s heavily subsidized fleet continues to bully small markets like the FAS. There is consensus that this practice needs to end, but the perpetual delay in action plays right into China’s hands. Additionally, we should push our European allies to remove market barriers that currently deter imports from the FAS.

As our adversaries continue to enhance geostrategic influence by exploiting natural resources in the developing world, we must offer alternatives that balance development with conservation. It’s doubtful we’ll be up to the task if China succeeds in enticing our closest allies in the FAS away from us. 

 Patrick Hynes is a fellow with ConservAmerica.