Taiwan is reviewing its economic ties with Papua New Guinea following the Pacific country’s decision to close Taipei’s unofficial representative office in Port Moresby. Papua New Guinea’s government announced last week that it would immediately shut down the office, stating the decision reflects its commitment to the one-China policy. Foreign Minister Justin Tkatchenko links the move to the government’s stance ahead of the 50th anniversary of Papua New Guinea’s diplomatic ties with Beijing.

In response, Taiwan’s Foreign Ministry says it is reassessing aspects of its relationship with Papua New Guinea, including reviewing liquefied natural gas (LNG) purchases. The review follows reporting that Taiwan’s economic interests are connected to the LNG imports sourced from Papua New Guinea.

The developments have been accompanied by statements from China’s foreign ministry after Papua New Guinea’s announcement. Overall, both Taiwan and Papua New Guinea treat the office closure as part of the wider diplomatic alignment with China, while Taiwan evaluates potential impacts on trade and energy procurement.