On 14 March 2016, the Argentine Prefecto Derbes shelled and sunk Lu Yan Yuan Yu 010; all 32 crew members were rescued.[4] According to the Argentine Coast Guard, the vessel was found fishing illegally within the exclusive economic zone (EEZ) of Argentina (latitude S 42° 34.8" | Lon W 55°4.7") off the coast of Puerto Madryn, a zone known for squid.[3] The Coast Guard reported that it hailed the fishing vessel over radio—in Spanish and English—and both visual and audio signals were sent to make contact. However, the vessel turned off its fishing lights and proceeded to flee towards international waters without responding. Next, the Coast Guard fired "warning shots", but the trawler allegedly made some attempts to ram the Coast Guard ship during the pursuit.[3] Prefecto Derbes opened fire on the trawler, which stopped only before sinking.[3] [5] The Coast Guard rescued four people, including the captain, while the remaining 28 crew were rescued by a nearby Chinese vessel.
According to the Chinese news agency Xinhua, the Chinese embassy in Argentine declared, that while the incident was under investigation, it has asked Chinese fishing companies active in the South Atlantic to exercise caution.
The Argentine foreign minister, Susana Malcorra, said that they hoped the incident would not damage the bilateral relations. According to trade sources, the ship had been involved in disputes over fishing rights before.