China’s maritime power spans the globe, with ports playing central role

How did China dominate global shipping ports? With six of the world’s ten busiest ports located in China, the world’s second-largest economy has come out on top of the global structure of ports recently, Bloomberg reported last week. For perspective, China has launched 129 port projects worldwide, with an investment cost above USD 60 bn.

Beijing’s modus operandi: Beijing cemented its supremacy by partnering with local and international players when investing to build and manage ports across the world, while local governments still own the land. Ownership of the ports is either composed of Chinese private companies or by public entities, such as China’s Cosco Shipping.

With great ports comes great power: In terms of global maritime power, 17 ports around the world are majority-owned by China. The nation is allowed notable leverage in the form of prioritizing or denying entry to ships from certain nations. Of these 17 ports, 14 have the potential to support naval operations, and China-run commercial ports can service or host military ships. To give you a perspective: China’s first overseas military base — located in Djibouti — was originally operating as a commercial port.

Ports of contention: China has pumped an initial figure of USD 1.3 bn into Peru’s Chancay Port, drawing the ire of Washington, whose worries hinge on concerns that the Peruvian port could support Chinese military advancement in the region and threaten US national security, the news outlet reported. Similar concerns center on the ports in Panama, which Western nations claim Beijing may leverage in a trade war.

Washington is pushing back: The Trump administration was reportedly looking into launching an acquisition spree for global strategic ports controlled by China — a quest motivated by concerns that the US’ own merchant fleet is not adequately prepared to provide logistical aid to the US Navy in case of a conflict. Washington’s efforts to secure control of CK Hutchison’s port holdings in the Panama Canal were a case in point, with the country also eyeing China-controlled assets in the US West Coast, Greece, Spain, and Jamaica.