How China Built a Global Port Network: The "Belt and Road" Strategy Reshapes Maritime Trade Influence

Ports stand out as vital arteries of global trade and strategic gateways that reflect the balance of power between nations. Amidst fierce competition among major powers to solidify their maritime influence, China emerges as a key player, redrawing the map of global trade influence through calculated moves and extensive, well-thought-out investments in critical port infrastructure.

China views ports as pivotal strategic tools for repositioning itself on the international stage and enhancing its economic and political influence. Since the launch of its ambitious "Belt and Road" Initiative, Beijing's efforts to bolster its presence in ports worldwide have accelerated, with a particular focus on Europe. China leverages the economic crises faced by some European countries and gaps in influence to adopt a policy that combines acquisition of stakes in ports with long-term involvement in their management and operation.

Drivers of China's Global Port Strategy

A "Wall Street Journal" report highlights several key factors that prompted China to accelerate its investments in ports after launching the "Belt and Road" Initiative:

• Reviving the Silk Road: The initiative aims to modernize land and maritime trade routes, revitalizing the historic Silk Road that connected China to Europe for centuries through cities like Valencia in Spain. Ports are crucial connection points for these maritime routes.

• Economic Power and Supply Chain Control: A shift in control over a port can lead to changes in trade routes and is a clear indicator of economic power. This is especially true given that fewer than ten major global shipping groups, including China's COSCO, Switzerland's MSC, France's CMA CGM, and Denmark's A.P. Moller-Maersk, transport almost all of the world's containers. Control over ports grants China immense influence in this vital network.

• Global Reach: Ports in which China is now investing are spread across the globe, according to a database compiled by Zhong Yuan Zwi Liu at the Council on Foreign Relations in New York, reflecting a wide-ranging expansion strategy.

Focus on Europe and Opportunistic Acquisitions

Through its giant state-owned company COSCO, Beijing seeks to solidify its presence in European ports. China is capitalizing on geopolitical and commercial shifts, particularly after the US tariffs imposed by President Donald Trump redirected Chinese exports away from the American market, leading them to flood European markets. In this reality, ports like those in Spain have become vital growth centers for Chinese shipping traffic, especially in sectors such as electric vehicles, which are seeing increasing demand in Europe.

Notably, China does not solely rely on building ports from scratch in developing countries. In Europe, it pursues an "opportunistic acquisition" strategy by seizing opportunities during economic crises, as exemplified by the Port of Valencia in Spain. In 2017, COSCO acquired a 51 percent stake, leveraging Spain's debt crisis and the departure of American investors who did not wish to remain long-term in the sector, allowing COSCO to fill the void.

The Port of Valencia, specifically, has become a symbol of Chinese success in Europe. Its traffic has surpassed that of Greece's Port of Piraeus, handling over 5.4 million TEUs (twenty-foot equivalent units) last year. It is now ranked as the most connected Mediterranean port in shipping lines, according to the UN index. This enhances China's ability to efficiently move goods deep into the European market, giving it a significant competitive advantage.

The report suggests that Chinese acquisition of European port infrastructure reflects a shift in the balance of economic power. A limited number of players, including COSCO, MSC, CMA CGM, and Maersk, dominate global container traffic. Therefore, controlling entry and exit points in Europe provides Beijing with an influential strategic card in the global trade equation.

The "Belt and Road" Initiative and the Role of Technology

Chinese journalist Suad Yai Xin Hua explains to "Sky News Arabia Economy" that the "Belt and Road" Initiative is the main driver behind China's intensified efforts to build a global port network in recent years.

Prominent examples of this expansion include:

• Port of Piraeus in Greece: which has become an important hub for Chinese shipping to Europe.

• Gwadar Port in Pakistan: a strategic point connecting China to the Arabian Sea.

• Kyaukphyu in Myanmar: enhances China's access to the Indian Ocean.

• Lekki Port in Nigeria: strengthens China's presence in West Africa.

Chinese companies have been deeply involved in the operation of these ports through various partnerships and contractual methods, contributing to the development of strategic transportation hubs connecting Asia, Africa, and Europe. This has not only enhanced the security and safety of Chinese shipping routes but also helped host countries develop infrastructure and create jobs, embodying the principle of "mutual benefit" promoted by China.

Yai Xin Hua points to the pivotal role of Chinese technology in this endeavor. Smart systems, green port technologies, and clean energy-powered equipment have been introduced, contributing to increased operational efficiency and reduced carbon emissions. The integration of ports with railways and highways has also fostered regional connectivity and increased the resilience of global supply chains, making Chinese ports an integral part of a comprehensive global logistics system.