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PNG official woos direct cocoa exports to China, with tax 'sweeteners' for Guangdong investors

"Why not come to Papua New Guinea, where the distance is short and we are closer to China?" Jesse Tukup Anjen, CEO of the Cocoa Board of Papua New Guinea, asked during a recent interview with South. 

His remarks came as PNG Prime Minister James Marape led a high-level delegation to China to strengthen economic ties. The visit also coincides with the 50th anniversary of diplomatic relations between the two countries in 2026. 

Jesse Tukup Anjen, CEO of the Cocoa Board of Papua New Guinea, joins South in a recent interview

Annual bilateral trade has already surpassed US$8 billion, with China as PNG's largest trading partner. Guangdong is PNG's biggest trade partner among Pacific island region. Trade between the two reached 307 million yuan (about US$42.2 million) in 2025, and increased by 66% year-on-year in the first quarter of 2026.

Anjen pointed out that much of PNG's cocoa is currently exported indirectly to China via Indonesia, Malaysia and Singapore. "Over the last two years, we had about seven exporters from PNG who are now qualified under GACC to do direct exports into the Chinese market," he said. "Unfortunately, not much volume is coming in yet." 

He urged more Chinese importers to source directly from PNG, stressing a clear geographic advantage over African producers. "Africa is a very long marketing distance with big freight costs. We are much closer to China."

Dried natural cocoa beans (Photo provided for South)

The CEO explained that cocoa in PNG is primarily produced by smallholder older farmers. Farmers require extensive training to gain access to premium markets for chocolate, ice cream and confectionery markets. "That's a very important area for us—how to do really good quality for boutique or different types of markets," he said. "We need to train our people."

Anjen also extended an open invitation to Guangdong businesses to establish processing facilities in PNG. "We are willing to give very good tax incentive packages—tax credits, free import of equipment with no import duties," he said. Downstream processing would enable PNG to increase the value of its beans before export, resulting in a more sustainable industry. 

He noted that some small local enterprises already produce cocoa powder, but on a small scale.

Broader agricultural cooperation between China and PNG is already taking root. In September 2025, a China-aided permanent demonstration base for Juncao (mushroom grass) and upland rice was inaugurated in Goroka, Eastern Highlands Province. The four-hectare base aims to increase mushroom production, animal feed and upland rice, with the goal of doubling incomes for participating farm households. 

In the cocoa sector, a small but significant success story emerged from Vanimo Green District in 2025, where a local community exporter sent nearly 15 tons of premium cocoa to China, generating over 40,000 kina—proof that direct trade works.

As PNG aims to create 2 million agricultural jobs, Anjen's message to Chinese investors is simple: "Come and build a factory in PNG. We can make the linkages." With its proximity to China and growing demand for quality beans, the Pacific nation hopes that direct trade will finally take off.

Reporter: Guo Zedong

Video, cover & photo: Guo Hongda

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