A significant number of beneficial owners of the fleet may be linked to illegal fishing.
In the waters of Argentina, a significant portion of the fleet engaged in squid fishing is effectively under the control of Chinese capital, despite the formal registration of vessels under the Argentine flag.
According to a study by illegal fishing and marine environment expert Milko Schwartzman, published by Infobae, companies of Chinese origin control 63.1% of the so-called jigging fleet that conducts squid fishing in Argentina's exclusive economic zone. This concerns 53 out of 84 vessels that, according to satellite monitoring by Global Fishing Watch and analysis of official Chinese documents, are owned or beneficially controlled by Chinese companies.
More than half of this fleet is concentrated in the hands of five Chinese fishing corporations, including the state-owned China National Fisheries Corporation. While the vessels operate under Argentine law and national flag, the key capital remains foreign.
The study also claims that such companies receive hidden support from Beijing. In particular, according to Chinese regulations, products harvested by Chinese firms abroad are considered national and are exempt from import duties and VAT when brought into China—the world's largest squid market. Considering the cumulative benefits, the author estimates that the advantage of such companies reaches 21% compared to local players, potentially yielding about $45 million in additional profits annually.
According to the researcher, under such conditions, Chinese corporations will be able to continue acquiring Argentine assets and, in less than a decade, establish control over the entire national squid fishing fleet.
The report also notes that at least 15.5% of the beneficial owners of the fleet may be linked to illegal fishing. At least four cases are mentioned in 2025–2026 when vessels operated under 'flags of convenience.' Additionally, the phenomenon of so-called 'biological legalization' is described, where legal Argentine catches are mixed at processing plants with undeclared catches from the '201-mile' area, complicating product traceability and creating risks of trade restrictions.
<iframe width="560" height="315" src="https://www.youtube.com/embed/fm6kARnYXfI?si=fJp3ElbXg-sZMCvx" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
