Downsides of China’s global port investments go beyond immediate security risks

A very timely article given the recent opening of the Chinese port in Peru!

"Chinese companies own or operate at least one port on every continent except Antarctica. These investments present more than immediate security concerns; they position China to fully exploit the economic potential of ports at the expense of other countries.

And with Chinese companies controlling development of a port, the government in Beijing can interfere in physical development of the facility, perhaps to ensure that navally useful infrastructure isn’t built. ...

But the ordinary civilian activity of a Chinese company controlling the development of ports can have negative consequences for the host nation and others. As is seen in many industries, one Chinese business will often prefer to work with another, with the result that China has maximum exposure to potential profits.

We saw a step towards this last month in relation to Darwin Port [Australia], the commercial operation in Darwin Harbour. As the ABC reported, Port of Darwin signed a memorandum with the Port of Shenzhen for ‘friendly cooperation’. The aim is to increase trade links between the ports, which would have to mean Chinese companies, such as shipping lines, deepening economic involvement in Darwin Port.

Situated in southern China, the Port of Shenzhen is one of the busiest and fastest-growing in the world.

Interestingly, this agreement was not announced in Australia, and after the ABC reported it there was no public discussion of new links to China by the commercial port in one of Australia’s most strategically important harbours. ...

The Council on Foreign Relations has been tracking China’s growing maritime influence through investments in strategic overseas ports and has reported that while China has limited overseas naval bases, it has emerged as a leading commercial power with considerable economic influence over international sea lanes and commercial ports. China’s shipping routes and service networks span major countries and regions worldwide, backed by 70 bilateral and regional shipping agreements with 66 nations. ..."

Downsides of China’s port investments go beyond immediate security risks | The Strategist