FISHY BUSINESS: CHINA'S MIXED SIGNALS ON SUSTAINABLE FISHERIES

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FISHY BUSINESS: CHINA'S MIXED SIGNALS ON SUSTAINABLE FISHERIES
FISHY BUSINESS:
                  C H I N A’ S M I X E D S I G N A L S
                  O N S U S TA I N A B L E F I S H E R I E S

                  Graeme Smith

M
       Y INITIATION INTO the politics        settlement. In the nineteenth century,
       of   the   demand    for    Pacific   ships from Mother England offloaded
seafood in the People’s Republic of          their unfortunate convict cargo and
China (PRC) began with a Packard             filled their holds with BDM harvested
Foundation–funded     project     led   by   in the Kimberley region of Western
former colleagues from the University
                                             Australia and beyond,1 as well as
of   Technology   Sydney.   Our     focus
                                             sandalwood from Tonga, Fiji, and
was the humble, slow-moving sea
                                             elsewhere in the South Pacific.2 This
cucumber, or bêche-de-mer (BDM),
                                             made the return journey far more
the dried body wall of the echinoderm
                                             profitable than the outward one.
that is beloved throughout the Chinese
                                                  The title of our final report,
world (and almost nowhere else). BDM,
                                             Interactive   governance   analysis   of
also known as trepang, was the iron
ore of the eighteenth and nineteenth         the bêche-de-mer ‘fish chain’ from

centuries in Australia–China trade,          Papua New Guinea to Asian markets,3

with trade between Macassans and             resembles many people’s first culinary
Aboriginal peoples pre-dating white          experience of sea cucumbers: a bit
218                                                    bland. The story was anything but             more affordable.5 At its peak in the
219
                                                       bland, however.                               mid-2000s,    PNG       was    the    world’s
                                                            From exporters in Milne Bay              third-largest supplier for the Hong
                                                       in eastern Papua New Guinea (PNG)             Kong market. From Tonga to Tuvalu,
                                                       preyed on by local pirates to importers       divers were taking ever-greater risks
      CONTRADICTION Signals on Sustainable Fisheries

                                                       in   Guangzhou       and     Hong     Kong    at greater depths to access valuable
CHINA STORY YEARBOOK Fishy Business: China’s Mixed

                                                       frustrated by the variable quality of         species such as the white teatfish
                                                       the final product, and PNG provincial         sea cucumber — often with deadly
                     Graeme Smith

                                                       government     officials   struggling    to   consequences. After the PNG fishery
                                                       manage the industry, the supply chain         abruptly closed, hunger stalked places
                                                       is rife with problems. Or, in the case        like Milne Bay. Villagers — by then
                                                       of PNG, the dormant supply chain,             accustomed to spending weeks at a
                                                       because sea cucumber populations had          time fishing on remote coral reefs —
                                                       crashed under the pressure of demand          had made the economically rational
                                                       from buyers in the PRC. On finding that       decision to neglect their subsistence
                                                       nearly all stocks had dropped by more         gardens    for   this        more    lucrative
                                                       than 80 percent in the previous five          trade. With sea cucumber fishing
                                                       years, the PNG Government imposed a           banned, they and their families found
                                                       fishing ban in 2009 that stayed in force      themselves struggling on one meal
                                                       for eight years — a story repeated            a day and relying on unappetising
                                                       throughout the Pacific, including in          ‘starvation foods’ like banana suckers
                                                       Tonga and Vanuatu.                            (secondary shoots from the banana
                                                            Because of the historical ubiquity       palm). Even PNG’s Chinese community
                                                       of sea cucumbers in the South Pacific         was affected; with no cash flowing into
                                                       before 2009, BDM was the main                 the coastal and island communities,
                                                       source of income for half a million           Chinese-run trade stores (see the
                                                       villagers   across   PNG’s    coast     and   China Story Yearbook 2017: Prosperity,
                                                       islands, driven in part by the appetite       Forum,    ‘Dreams       of    Prosperity    in
                                                       of   China’s   officials   and   growing      Papua     New    Guinea’,       pp.131–136)
                                                       middle class for luxury seafood.4 One         found     themselves     struggling,       and
                                                       of the first impacts of Xi Jinping’s          many shopkeepers simply returned to
                                                       习近平 anti-corruption and austerity             Fujian, leaving some villagers with a
                                                       campaigns was that BDM became                 long trek just to buy basic goods.
While it provided a livelihood                 The exact size of China’s DWF
for many in PNG, the trade in sea           fleet is unknown. A 2020 report by the
cucumbers paled in comparison with          UK-based global think tank Overseas
the lucrative tuna trade. The tuna trade    Development Institute claimed China
has less impact on island communities       had 16,966 DWF ships, even though
because the boats are generally crewed      PRC sources put the number at or below
by foreign nationals and tuna cannot        3,000 vessels.8 China is indisputably
be accessed on a commercial scale           the world’s largest DWF fleet — and
without    huge    upfront   investment.    the most prone to illegal, unreported,

But the trade is not without danger,        and unregulated (IUU) fishing, even

as shown by a series of investigative       outstripping the notorious Taiwanese

reports funded by the Judith Nielson        fleet. A 2021 report to the US Congress,
                                            cited China and Taiwan alongside
Foundation in 2021.6 These detail the
                                            Costa Rica, Guyana, Mexico, Russia,
suspicious deaths of fishery observers
                                            and Senegal for illegal fishing, bycatch
at sea, including on Taiwanese-flagged
                                            of endangered species, and shark
vessels,   and    the   observers’   near
                                            catches on the high seas.9 There is
impossible role in ensuring boats
                                            no doubting the enthusiasm of PRC
fish according to the rules when the
                                            state    actors     for   accessing      Pacific
regulators they represent are often
                                            fishing grounds; a recent Ministry of
thousands of kilometres away and
                                            Commerce investment guide to PNG
facing a captain and crew looking
                                            enthusiastically described its exclusive
to maximise their earnings. Of the
                                            marine fishery zone:
sixteen unsolved deaths listed on the
Association for Professional Observers
                                                [A]pproximately           2.4        million
website, nine were men from PNG,                square kilometers … an important
Fiji, and Kiribati.7 With the emergence         Pacific       fishery,   rich   in     tuna,
of the PRC’s distant-water fishing              prawns, lobsters, reef fish and
(DWF) fleet as the dominant one in              sea cucumbers. The tuna catch is
the Pacific, the reflagging of ships and        about 150,000 to 200,000 metric
the proliferation of shell companies            tons, accounting for about 20–30%
further hinder transparency, including          of catch in the Pacific and 10% of
about their impact on fish populations.         the world’s total catch .
220                                                         PNG      looms   large   in   China’s   ‘going out’ to ‘coming home’. Also:
221
                                                       DWF ambitions, and in its goals              never get between a local government
                                                       to develop a ‘blue economy’ and              and a subsidy.
                                                       become a ‘maritime great power’,10 as               Three provinces dominate the
                                                       announced by former president Hu             DWF      sector:    Zhejiang,     Shandong,
      CONTRADICTION Signals on Sustainable Fisheries

                                                       Jintao 胡锦涛 in 2012 and embraced              and Fujian. The DWF sector started
CHINA STORY YEARBOOK Fishy Business: China’s Mixed

                                                       by Xi Jinping within the framework           out largely controlled by a state-
                                                       of the Maritime Silk Road. Much of           owned enterprise, the China National
                     Graeme Smith

                                                       the rhetoric around these issues is          Fisheries    Corporation.       Over   time,
                                                       impenetrable, even by Communist              private operators came to dominate
                                                       Party of China (CPC) standards, with         the sector, albeit backed by provincial
                                                       boilerplate     modernisation      jargon    and city governments anxious to
                                                       (‘build   a   great   maritime     power’    generate revenue and find work for
                                                       建设海洋强国) layered on top of catch-             fishers laid off in the restructuring of
                                                       all expressions like ‘blue economy’.         China’s domestic fishing fleet.12 In the
                                                       But whereas the rhetoric of the Hu           early Hu era, the DWF sector’s lobbying
                                                       era pointed to the intrinsic value of        efforts paid off and it secured lucrative
                                                       environmental protection, today, the         fuel    subsidies    that   helped     make
                                                       focus is more on the economic benefits       the industry profitable.     13
                                                                                                                                      All three
                                                       of an unpolluted environment,11 as           provinces have established DWF bases
                                                       captured in Xi’s phrase ‘green water         to support fishing on the high seas and
                                                       and green mountains mean mountains           in exclusive economic zones. These
                                                       of gold and silver’ 绿水青山就是金山                 provincial governments, supported by
                                                       银山 from his marathon work report to          the Ministry of Agriculture under the
                                                       the Nineteenth CPC Congress in 2017.         broad umbrella of the Belt and Road
                                                            The issues plaguing the PRC’s           Initiative, are making a major effort
                                                       DWF sector draw out familiar themes          to build DWF bases to provide the
                                                       in Chinese politics: the impossibility of    PRC fleet with processing plants and
                                                       strictly regulating PRC enterprises far      other infrastructure; a recent Pacific
                                                       from home, the requirement to appear         example was the refurbishment of the
                                                       to be a ‘responsible great power’, and       SinoVan fisheries plant in Vanuatu,
                                                       the obligation to secure resources for       funded by a loan from the Export–
                                                       the domestic market — a shift from           Import Bank of China. The plant,
officially launched by Vanuatu’s Prime     to rein in IUU fishing: setting up a
Minister Charlot Salwai in 2019, will be   blacklist of violators, trialling its own
run as a joint venture between China       observer system on boats, and even
National Fisheries Corporation and the     putting a moratorium on squid fishing.
Government of Vanuatu.14                   But new technologies are bringing
     In the Illegal, Unreported and        to light both the ingenuity of rogue
Unregulated Fishing Index produced         mainland fishers in avoiding detection
by   the   Global   Initiative   against   and     the   ineffectiveness      of     new
Transnational Organized Crime in           regulations. A recent report published
2019, the PRC topped the list of the ten   by the global Center for International
worst-performing countries.15 Herein       Maritime Security (CIMSEC)16 used
lies the contradiction for the CPC:        a     maritime   intelligence    predictive
the Party wants China to be a ‘great       tool called Windward to visualise
maritime power’, with the seafood,         the activities of China’s DWF fleet
employment, and revenue that come          off    Ecuador’s    Galapagos        Islands,
with it; but it also wants to avoid a      where the sheer size of the PRC fleet
reputation for being a dodgy global        prompted widespread alarm in 2020.17
operator, particularly in the waters       The CIMSEC report reveals not just
of developing nations. The central         the staggering scope of China’s high-
government has even taken measures         seas fishing — with a fleet of up to 350

                                                                  Activities of China’s DWF
                                                                  fleet off the Galapagos
                                                                  Islands prompted
                                                                  widespread alarm
                                                                  Source: Pixabay
222                                                    vessels active off the Galapagos for        government continues to subsidise
223
                                                       several months from July 2020 — but         companies that encourage excessive
                                                       also the diverse array of tactics used to   fishing, the message to provincial and
                                                       dodge the letter of the law: ships ‘going   city governments will remain mixed. If
                                                       dark’ as they enter Ecuador’s protected     provinces like Fujian, Shandong, and
      CONTRADICTION Signals on Sustainable Fisheries

                                                       fisheries, catch being transhipped to
CHINA STORY YEARBOOK Fishy Business: China’s Mixed

                                                                                                   Zhejiang benefit from ships bulging
                                                       refrigerated cargo ships or ‘reefers’,      with squid, albacore, and shark fin
                                                       reflagging of the ships to other nations
                                                                                                   (which, though banned from state
                     Graeme Smith

                                                       such as Panama, and even changing
                                                                                                   banquets almost ten years ago, is still
                                                       their reported draughts and registered
                                                                                                   considered a delicacy in the south of
                                                       lengths to obscure their activities.
                                                                                                   the PRC), it is unlikely anyone will be
                                                       Further complicating the picture is
                                                                                                   closely checking logbooks when the
                                                       the partial militarisation of the fleet,
                                                                                                   boats come in. As for sea cucumbers,
                                                       enabling it to act as a kind of third sea
                                                                                                   Palau’s President, Surangel Whipps Jr.,
                                                       force after the Chinese navy and coast
                                                                                                   has decried — to little effect — China’s
                                                       guard, particularly in disputed areas
                                                                                                   unwillingness to answer his nation’s
                                                       such as the Senkaku Islands.
                                                            Like many environmental issues         calls to end the illegal harvesting of

                                                       in the PRC, the central government          sea cucumbers in Palau’s territorial

                                                       faces   the   dilemma     of   how    to    waters, saying they ‘don’t seem to care

                                                       balance conflicting interests. Private      and that is unacceptable. They should
                                                       companies now dominate the DWF              take responsibility for their people,
                                                       fleet and the state has little ability to   and it is like they encouraged them by
                                                       regulate canny operators. If the central    ignoring them. It’s not good.’18
This text is taken from China Story Yearbook: Contradiction, edited by
    Linda Jaivin and Esther Sunkyung Klein with Sharon Strange,
 published 2022 by ANU Press, The Australian National University,
                         Canberra, Australia.

                       doi.org/10.22459/CSY.2022.06C
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