Policy shift: CNMI governor inclined to revisit China market
- Admin
- 10 minutes ago
- 4 min read
By Bryan Manabat
Saipan—Gov. David M. Apatang is steering the Commonwealth of the Northern Mariana Islands through economic uncertainty with a pragmatic approach to governance.
“I’m not perpetually stuck in a single leadership style,” Apatang told the Pacific Island Times. “Different situations call for different ways of doing things.”
In economic policy, Apatang is seeking to depart from his predecessor’s approach. He signaled a potential shift in the tourism strategy, suggesting that the CNMI revisit its relationship with China.
“I believe the pivot from the China market is worth revisiting,” he said. “It may be a viable market to sustain our CNMI visitor and hospitality industries, which I am fully aware are seriously struggling to stay afloat.”
The Chinese tourism market made up 50 percent of the islands' visitors before the Covid-19 pandemic hit. Two months after assuming office in 2023, Palacios announced his administration’s policy to reduce reliance on Chinese tourism and strengthen other Asian markets. The CNMI business community, however, was not pleased with the policy and has since advocated for reviving focus on the China market.
To stimulate economic activity, Apatang is working to restore visitor arrivals to pre-pandemic levels and improve the business climate. His administration is streamlining application and permitting processes and offering incentives, such as favorable tax and land-lease terms, to attract new investors.
Since taking office on July 23, Apatang has faced urgent fiscal challenges, including keeping the government operational amid declining revenues and rising costs.
“Of great challenge since becoming governor was trying to keep the CNMI government open and operating within available financial resources,” he said.
Apatang assumed full executive authority following the death of Gov. Arnold I. Palacios in July. He will serve Palacios’ unfinished term until 2027.
Apatang has emphasized practical decision-making, fiscal discipline and transparency as the foundation of his administration.
However, he faced public outrage in October for asking the legislature to approve an annual salary of $80,000 for his special assistant, Henry Hofschneider, just two days before issuing a directive for sweeping cost-cutting measures. The requested amount was $20,000 above the government’s $60,000 pay ceiling. The governor later withdrew the request following the backlash.
Other members of his administration faced charges of misusing public resources, including Lt. Gov. Dennis Mendiola, Homeland Security official Joey Dela Cruz and Lt. Justin Paul Mizutani of the Department of Fire and Emergency Medical Services. Four others, Henry Sablan Hofschneider, Larissa Sablan Flores, Teresita Borja Camacho and Eloida Dela Cruz Macaranas, were charged with misconduct in public office in a separate case.
Apatang, who previously served as Saipan mayor and lieutenant governor, said his approach remains consistent. “I have always been cautious, attentive, fair and transparent in carrying my responsibilities — always considering the best interest of the CNMI and its people.”
Apatang pledged to continue the strong federal relationships, including with the White House and the Department of the Interior’s Office of Insular Affairs and the Department of Defense.
“I commit to the same level of transparency, if not more, and promise to work together,” he said. “Good relationships are built on the foundation of honesty, transparency, consistency, trust, faith, respect and clear and open communication.”
Apatang identified three core priorities for the remainder of his term: ensuring public safety, protecting the health and welfare of residents, and supporting economic opportunity.
“Every person and business must have a chance to make a living and live a better life,” he said. “My administration is very concerned about the declining economic activities and presumed emigration.”
Apatang added. “We will continue focusing on ways to maintain the CNMI’s base population, keep businesses open, assist new ones to start and thrive and keep costs down and affordable.”
He is also pressing the Commonwealth Utilities Corp. to accelerate renewable energy development to lower electricity rates. “I continue to pressure CUC to develop alternative energy production with the long-term goal of realizing lower electricity rates than current,” he said.
A major fiscal issue is the CNMI’s annual obligation to the Settlement Fund. Apatang is considering a $200 million pension obligation bond to retire the liability and ease pressure on the general fund.
“This matter was one of the things on the to-do list of late Governor Palacios, and I am allotting my time during my term to see that it pulls through,” he said.
To guide economic recovery, Apatang reconvened the Governor’s Council of Economic Advisers and directed agencies to attract new investment. “My hope is that the CNMI will be on track to recovery that brings back confidence and security,” he said.
Apatang said his governance is rooted in listening to community concerns and responding with practical solutions. “I keep the struggles of residents and businesses on my daily calendar,” he said.
He emphasized transparency as essential to maintaining public trust. He holds regular press conferences and Cabinet meetings to share updates and hear feedback. “My doors are always open,” he said. “I welcome anyone who wants to talk, and I encourage my Cabinet to be just as open.”
In a bid to prevent a government shutdown, Apatang signed off on a $179 million budget for fiscal year 2026 on Sept. 30, but urged lawmakers to pass a revised spending plan based on lower revenue projections of $156 million.
On Oct. 1, he issued a directive, instructing executive departments to implement austerity protocols, including reduced work hours, a hiring freeze, travel bans, overtime restrictions and a halt on non-essential purchases.
Addressing government employees and families affected by furloughs and reduced hours, Apatang acknowledged the hardship but urged unity.
“I am asking everyone to bear with these tough challenges we are all going through,” he said. “I am confident that by supporting each other, we will weather any hardships that come our way.”
He added that the CNMI has endured economic downturns before. “As in the past, we pulled through in the end and readjusted to levels that our available resources could support.”
“In our CNMI, where our economy is vulnerable to outside economic influences — as we do not have any industry to sustain us during periods of market uncertainties — we have to brace for impacts that come our way,” Apatang said.
“This is necessary for us to survive. Again, as long as we stay together and support each other, bear the hardships together, we will bounce back.”
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