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China’s global port expansion posts threats to U.S. trade and security

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China’s global port expansion posts threats to U.S. trade and security
February 11, 2025
Article Body Text Bing X | 2025-02-11 19:58:00 More than half of China's 129 overseas port projects are located along critical shipping routes and chokepoints in the Western Hemisphere. <h3>China’s global port expansion posts threats to U.S. trade and security</h3> China’s increasing control over global ports, especially the Panama Canal, could enhance its power projection and disrupt global trade and regional security through dual-use military and commercial infrastructure, analysts warned on Tuesday.A report released by the Council on Foreign Relations (CFR) last year found that of China’s 129 overseas<a href="https://www.cfr.org/tracker/china-overseas-ports" target="_self" rel="" title="https://www.cfr.org/tracker/china-overseas-ports"> port projects</a>, more than half are located along critical shipping routes and chokepoints in the Western Hemisphere. These investments span from stake acquisitions to port construction and operations, and can potentially be used for both military and commercial purposes.U.S. wary of Chinese influenceU.S. President Donald Trump and senior officials in his administration have previously warned about the security risks posed by Chinese investments in the Western Hemisphere, especially around the<a href="https://www.rfa.org/mandarin/zhengzhi/waijiao/2025/02/08/china-summons-panamanian-ambassador-to-china/" rel=""> Panama</a> Canal. U.S. Secretary of State Marco Rubio’s recent visit to Panama is widely seen as an effort to counter China’s expanding influence and reinforce the U.S.’s strategic interest in maintaining control over the canal.The U.S. House Homeland Security Committee held a hearing on February 11 to assess the threats posed by China’s maritime expansion. Committee Chairman Carlos Gimenez highlighted how Beijing took control over key maritime infrastructure around the Panama Canal through state-owned companies such as China Merchants Port Holdings, Hutchison Port Holdings, and COSCO Shipping, which could threaten U.S. commercial shipping, intelligence security, and naval operations.Chinese companies also have presence in U.S. ports. COSCO Shipping Lines, for example, was suspected of smuggling illegal goods, further exacerbating national security risks, he said.“And while<a href="https://www.rfa.org/mandarin/zhengzhi/2025/02/05/lu-rubio-panama-quitting-china-bri/" rel=""> Panama</a> has recently announced an audit of Hutchison Ports, that is simply not enough. We do not need an audit. We need action. The United States cannot and will not accept a scenario where a foreign adversary — one that openly seeks to undermine our global standing — controls infrastructure critical to U.S. homeland security, military readiness, and economic stability,” he said.“The message to our partners in the Western Hemisphere must be clear. If you want to benefit from security cooperation and economic partnership with the United States, you must distance yourselves from PRC state-owned enterprises. The CCP has no rightful place in shaping the economic and security landscape of our region,” Gimenez said.Threats to U.S. securityIn June 2024, Gimenez and other U.S. lawmakers released a report highlighting the threats posed by China’s growing influence over critical maritime infrastructure. The report pointed out that Shanghai Zhenhua Heavy Industries (ZPMC), a Chinese state-owned enterprise, dominates over 80% of the ship-to-shore crane market at U.S. ports. In 2021, the FBI uncovered intelligence-gathering equipment in cranes manufactured by ZPMC at the Port of Baltimore.Speaking at the hearing, Isaac B. Kardon, a senior fellow at the Carnegie Endowment for International Peace, warned that Chinese state-owned enterprises operating ports in the Western Hemisphere could provide Beijing with strategic opportunities to project military power in the Americas. “They may implicate homeland security and regional maritime security through two main pathways: first, port facilities and associated infrastructure are ready platforms for regional People’s Liberation Army (PLA) military operations; second, they introduce a range of physical and digital operational risks and vulnerabilities for U.S. ports and transportation systems.”However, Kardon said that China’s naval activities in the Americas remain limited, and that Beijing’s strategic focus is still centered on the Western Pacific and Taiwan.“The most probable risks posed by Chinese companies’ port investments in the United States arise from PRC-made equipment and software nested within maritime infrastructure and transportation systems,” he said. “Even non-PRC ports can present threats if they feature Chinese equipment to move and scan commercial freight, for instance. In other words, the PRC can engage in commercial espionage even at those ports where only its equipment is present. Something as benign as the ZPMC ship-to-shore cranes moving containers are likely a tool for Chinese commercial espionage.”In November of 2024, Chinese President Xi Jinping attended the opening ceremony of Peru’s Chancay Port, a flagship “Belt and Road” project. The port, controlled by COSCO Shipping Ports, allows South American countries to bypass Mexican and U.S. ports when trading with Asia. COSCO holds a 60% controlling stake in Chancay, granting it exclusive operational rights.Matthew Kroenig, a former special adviser in the Office of the Secretary of Defense, said China uses overseas infrastructure investments to consolidate access to resources, influence elites, and exert influence on governments to tilt national policies in China’s favor while weakening democratic norms, transparency, and environmental standards.China’s investments in Latin America — particularly in ports in Panama and Peru — poses potential threats to U.S. security and economy, Kroenig said.“For example, ports operated by Chinese companies are used to smuggle fentanyl and its precursor chemicals... China also uses its technology and data access to gain intelligence, and could restrict or block access to ports, threatening American trade and economic well-being in the event of a crisis or war... (China’s) control over the ports also hinders the passage of naval vessels that could disrupt U.S. war plans. Additionally, China may use deep-water ports to park warships and project military power in the Western Hemisphere,” he said.Hard decouplingTo counter China’s growing influence, Kroenig suggested that the U.S. and allies should pursue a hard decoupling with China in areas of sensitive national security concern, and provide credible and affordable alternatives to Chinese infrastructure investments.Ryan C. Berg, director of the Americas Program and head of the Future of Venezuela Initiative at the Center for Strategic and International Studies, warned that China’s military-civil fusion strategy could lead to commercial espionage and military security risks, such as radar and Global Positioning System jamming, or even physical attacks from containerized anti-ship weapons systems. He also noted that Chinese-operated ports could serve as hubs for transnational criminal organizations (TCOs), further exacerbating illegal trade and security risks.To mitigate these threats, Berg suggested that the U.S. establish a comprehensive risk assessment framework and leverage the U.S. International Development Finance Corporation (DFC) and multilateral financial institutions to engage in port buyback programs where the PRC is the owner, and reduce reliance on Chinese-made port equipment in the Western Hemisphere. Furthermore, Berg called for the creation of a special “Belt and Road” task force in the State Department’s “China House” (the Office of China Coordination) to track Chinese investments in infrastructure, critical minerals, and Information and communication technology (ICT) networks, while expanding satellite monitoring of China’s port activities across Latin America.Cary Davis, president and CEO of the American Association of Port Authorities (AAPA), said the U.S. should support the “reshoring” of manufacturing of cargo handling equipment back home and to its allies to reduce dependence on China.He also called for increased federal funding in port infrastructure, especially in security and equipment, to create friendly shores. To read the original story in Chinese, click <a href="https://www.rfa.org/mandarin/shangye/jingji/2025/02/11/port-west-hemisphere-trade/" target="_self" rel="" title="https://www.rfa.org/mandarin/shangye/jingji/2025/02/11/port-west-hemisphere-trade/">here.</a>
Content Type Article
Language English
NewsML Media Topics Arts, Culture, Entertainment and Media
Subtitles / Dubbing Available No
Network GNS
English Title China’s global port expansion posts threats to U.S. trade and security
Embargo Date March 12, 2025 11:48 EDT
Byline Bing X
Brand / Language Service Global News Service