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    Global Banking & Finance Review® is a leading financial portal and online magazine offering News, Analysis, Opinion, Reviews, Interviews & Videos from the world of Banking, Finance, Business, Trading, Technology, Investing, Brokerage, Foreign Exchange, Tax & Legal, Islamic Finance, Asset & Wealth Management.
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    Finance

    Posted By Global Banking and Finance Review

    Posted on January 15, 2025

    Featured image for article about Finance

    TAIPEI (Reuters) - Taiwan will step up the surveillance and management of ships carrying flags of convenience, including boarding them, after a Chinese-linked cargo vessel was suspected of damaging an undersea communications cable, the government said.

    Taiwan, which China views as its own territory, said a ship owned by a Hong Kong company but registered both in Cameroon and Tanzania, damaged a cable to the north of the island earlier this month, although it says it has not been able to verify the ship's intentions and was unable to board it due to bad weather.

    The ship's owner has denied involvement, and China's government has said Taiwan was making up accusations before the facts were clear.

    The incident has particularly alarmed Taiwan given it has repeatedly complained about "grey zone" Chinese activities around the island, designed to pressure it without direct confrontation, such as balloon overflights and sand dredging.

    In a report to lawmakers ahead of ministers taking questions in parliament on Thursday, Taiwan's National Security Bureau said it plans to step up surveillance and management of ships carrying so-called flags of convenience, referring to those registered to other countries than their actual owner.

    Such ships which have previously been found to misreport information about them will be put on a list of ships for priority inspection at ports, it said.

    If these ships enter within 24 nautical miles of Taiwan's coast and are close to where undersea cables are, the coast guard will be dispatched to board them and investigate, the bureau added.

    Taiwan will also promote greater international cooperation with the United States and Europe over suspected damage to undersea cables, it said.

    "The bureau will continue to exchange intelligence with like-minded countries, collect threat alert information, analyse developing trends in sabotage techniques and false covers, and share prevention and response experience."

    It did not give details.

    Taiwan, whose government rejects Beijing's sovereignty claims, has pointed to similarities between what it experienced and damage to undersea cables in the Baltic Sea following Russia's invasion of Ukraine.

    Last week, Taiwan's government said Chinese ships flying flags of convenience have "the mark of evil about them".

    (Reporting by Yimou Lee and Ben Blanchard; Editing by Raju Gopalakrishnan)

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