According to the 1982 United Nations Convention on the Law of the Sea, nations control marine resources within a 200-mile "exclusive economic zone"; beyond that are international waters. While the United States never signed the treaty, it has declared a 200-mile offshore exclusive economic zone.

Bolstered by generous subsidies and at times protected by armed coast guard cutters, Chinese fishermen have been illegally fishing near the Korean Peninsula and in the South China Sea, a hotly contested areaclaimed by six countries. By exploiting these waters China has come to dominate the international squid market. Nearly half of this catch is exported to other Asian nations, Europe and the United States.