Blue Economy Challenges: Who Licenses Chinese Vessels Fishing In Indian Ocean?

• China has been flagged as a major state actor facilitating illegal, unreported and unregulated fishing in the South-West Indian Ocean (SWIO) region
• The IUU fishing activities deny the countries in the SWIO, including Kenya, the opportunity to harness the potential of the Blue Economy
• A report by the Environmental Justice Foundation (EJF) released in April 2024 showed that a few Chinese vessels are licensed, with the rest operating without a licence

The infiltration of Chinese Distant Water Fleets (DWF) into the South-West Indian Ocean (SWIO) region continues to spark debate over illegal, unreported and unregulated (IUU) fishing.

The IUU activities, blamed for diminishing resources in the Blue Economy across SWIO countries, are largely linked to Chinese vessels.

A report dubbed Tide of Injustice, released by the Environmental Justice Foundation (EJF) in April 2024, stated that Chinese vessels were linked to 86 unique cases of IUU fishing or human rights abuses within the SWIO region between 2017 and 2023.

"Half of these cases involved vessels owned or controlled by state-owned enterprises or enterprises in which the Chinese government has a partial interest. Some the vessels are currently believed to be authorised to target tuna in the SWIO," read the report in part.

Why Chinese vessels get fishing permits

The report raised concerns over the process of licensing these vessels, terming it opaque.

China has, over the years, invested heavily in the SWIO’s blue economy, including a range of ports and fisheries infrastructure.

"China has long-standing and intensifying economic and political ties with the SWIO region. However, the terms of trade ties are often opaque," EJF report noted.

In 2023, 138 Chinese vessels were licensed to operate fishing activities in the region.

Out of this, 95 were longliners targeting tuna species, 4 were refrigerated cargo vessels supporting the longline fleet, and 39 were non-tuna vessels.

Who issues licenses to Chinese vessels?

Fishing permits are issued by the SWIO region countries and international organizations such as the Indian Ocean Tuna Commission (IOTC).

In Kenya, the Kenya Maritime Authority (KMA) and the Kenya Fisheries Service (KFS) are responsible for issuing fishing licences to Chinese vessels.

KFS carries a background check to ensure it has not been involved in irregular, illegal or unregulated activities.

In Tanzania, the Deep Sea Fishing Authority issues fishing permits to the Chinese vessels

The fishing permits regulate fishing activities within their respective Exclusive Economic Zones (EEZs) and ensure compliance with local fishing regulations.

At the international level, the Indian Ocean Tuna Commission (IOTC) manages tuna fisheries and issues a licence for Tuna fishing.

IOTC is managed by different countries bordering SWIO, including Kenya.

The report showed that IOTC and the Government of Tanzania in an agreement with the China Overseas Fisheries Association (COFA) issued licenses to 30 Chinese-flagged vessels between September 2022 and August 2023.

Which forces are behind Chinese vessel licensing

According to the EJF report, about 60 Chinese vessels without publicly declared licenses operated in Mozambique between 2017 and 2018.

China's DWF is poised to be the world's largest, boasting the largest number of fishing vessels.

According to Reportika, Chinese vessels fished in 80 countries for more than 3 million hours in 2019 and 2021, including countries in the Indian Ocean Region, Africa, South America, Russia, and Oceania.

EJF attributed the licensing of most vessels and facilitation of those unlicensed to Political influence.

The report's case study of Mozambique showed that shell companies with links to the government's highest leaders transfer licences to Chinese vessels.

How to ensure legal permits in Indian Ocean fishing

The report recommended the need for transparency measures to be enshrined throughout fisheries management structures and regulations.

Key stakeholders, including governments, should enhance compliance with beneficial ownership requirements under Resolution 19/04 concerning the IOTC Record of Vessels Authorised to operate in the IOTC area of competence.

It also suggested measures like those taken by the World Trade Organisation (WTO) to end harmful fuel subsidies countries pay to finance their distant-water fishing fleets.