China’s growing influence over the world’s seaports is a geopolitical risk hidden in plain sight. Chinese companies own or operate terminals in 96 ports in 53 countries according to research by Isaac B. Kardon and Wendy Leutert. This economic influence gives China significant political power. But there are steps the Biden administration can take to reduce the security concerns. China’s port investments raising security fears, say experts.
French shipping company CMA CGM announced in December its decision to purchase container terminals at the Port of New York and New Jersey. But as the Hudson Institute’s Christopher O’Dea writes, “CMA CGM has significant financial and operational links with Chinese state-owned companies.” It sold a minority stake of its terminal business to China Merchants Holdings (International) and has received financing from the Export-Import Bank of China.
Across the Atlantic, the German government approved Chinese state shipping company COSCO to own 24.9% of the port of Hamburg late October. Partial ownership of a port can be mutually beneficial from a global trade perspective. However, when 7 of the world’s 10 busiest ports are already in China, the extensive investment in foreign ports should raise concerns about China’s dominance of international shipping. Former President Trump forced COSCO to relinquish its ownership of the Port of Long Beach in 2019 over security concerns.
In a free-market world at peace, port ownership and logistic dominance wouldn’t be an issue. But historically seaports have played an important role in developing economic and military power. China’s consolidation of its economic influence needs to be considered in the context of its growing naval ambitions. China’s port investments raising security fears, says experts.
In Africa, 46 nations have signed into China’s Belt and Road Initiative, which aims to stimulate economic development with Chinese investments. Since 2017, China has maintained a naval base in Djibouti its first overseas—next to the Doraleh Multi-Purpose Port situated at the entrance to the Red Sea and the Suez Canal. The U.S. has said it is concerned about surveillance because the Chinese facility is located next to the U.S. Navy’s Camp Lemonnier.
On the other side of the continent, the U.S. expressed concerns in December 2021 about China’s intention to build a naval base in Equatorial Guinea on the Atlantic Ocean coastline across from Brazil. In Asia, a China-funded upgrade of Cambodia’s Ream Naval Base broke ground in June amid Western concern about China’s military presence in the Gulf of Thailand. Last month, the Biden administration pressured Cambodia to clarify whether the Chinese Navy now has exclusive access to the base.
China’s military intentions are murky. But President Xi Jinping has made it abundantly clear he intends China to “take center stage in the world.” As British philosopher, Bertrand Russell wrote decades ago after a 1920 visit to China, “As soon as China has proved strong enough for a successful defense, it is apt to turn to foreign aggression.”
But Chinese development into a global naval threat isn’t a foregone conclusion. As US is also coming up with the strategies to limit the emerging risk.
