There are ongoing investigations into whether China's shipping cranes could be utilized as espionage tools. Beijing's systematic information-gathering endeavors potentially enable the pinpointing of critical Western and Indian trade and supply chain vulnerabilities, as well as the monitoring of military shipments, equipment, and components.
Global
maritime operations conducted by Beijing serve a dual purpose as
intelligence-gathering outposts. Over the past three decades, the Chinese
government has been actively seeking access and influence in open seas,
strategic shipping lanes, and foreign ports worldwide.
China's
ownership, co-ownership, or operation of around 96 foreign ports globally
reflects its expanding portfolio, including recent acquisitions in Hamburg,
Germany, and the Solomon Islands.
Given
Beijing's increasingly adversarial stance towards the West in economic and
geopolitical matters, it is imperative to thoroughly comprehend and mitigate
the risks associated with Chinese maritime infrastructure ownership.
What specific measures should the Western world and India
take to mitigate challenges posed by Chinese takeover of maritime assets all
over the world?
What should be done so that free flow of global merchant
traffic takes place both during peace time and war time?
Approximately
90% of the world's trade relies on sea routes to transport finished goods,
components, and commodities to international markets. However, this critical
maritime trade is vulnerable to disruptions caused by various factors such as
pandemics, port congestion, or ship blockages in canals. While historical wartime
embargoes involved fleets of ships, contemporary warfare can incapacitate
shipping through the manipulation of information.
Chinese seeking influence in open seas,
strategic shipping lanes, and foreign ports
Foreign
ownership or control of ports and logistics operations is not inherently
problematic, as companies from the Netherlands, Singapore, and the United Arab
Emirates similarly own and manage numerous overseas ports.
Our
understanding must encompass identifying precisely what information Beijing has
access to, what data it collects, and how intelligence-gathering activities are
linked to Chinese port operations.
China's
maritime operations raise two significant concerns. First, China has introduced
extensive and relatively opaque information-gathering infrastructure at
critical ports across the world. Second, Chinese laws mandate that all Chinese
companies, whether private or state-owned, operating abroad must gather and
report intelligence on foreign entities to the Chinese government.
Given Beijing's
increasingly adversarial stance towards the West in economic and geopolitical
matters, it is imperative to thoroughly comprehend and mitigate the risks
associated with Chinese infrastructure ownership.
Out of
the world's 75 leading container ports located outside the Chinese mainland,
almost half have some degree of Chinese ownership or operational involvement,
with the latter being more substantial, enabling China to control access to
terminals, supplies, dry docks, and storage facilities. Over half of China's
overseas maritime assets are strategically positioned along major shipping
routes traversing the Indian Ocean, the Red Sea, the Suez Canal, the
Mediterranean Sea, and other vital waterways.
China's
maritime presence, varying from smaller facilities to larger operations with
considerable operational control, creates opportunities for extensive
information-gathering and strategic activities.
Also,
China holds the world's leading shipping capacity, encompassing a vast
commercial fleet, including container ships, oil tankers, liquid natural gas
transporters, and bulk carriers for commodities like coal and grain. China
manufactures over 90% of all shipping containers and 80% of the world's
ship-to-shore cranes.
Chinese shipping activities serve as data
collection outposts, engaged in intelligence-gathering
Chinese
shipping activities abroad serve as data collection outposts, engaged in
intelligence-gathering and surveillance on a massive scale. Numerous ports globally
utilize China's logistical software system, LOGINK, to monitor a wide range of
trade-related information, including vessel and cargo status, customs data,
billing and payment records, geo location data, pricing information, regulatory
filings, permits, passenger manifests, and booking details. Chinese-owned ports
also host 5G telecommunications towers, while China provides the operating
systems for port facility computers.
Chinese
stringent policies, which compel all commercial activities to align with the
state's interests. Chinese port, shipping, and logistics companies are legally
obligated to gather information for the Chinese Communist Party, and Chinese
law obstructs the flow of shipping data, such as vessel location signals, to
other nations.
China,
already possessing the world's largest navy, benefits from access to a global
network of state-owned ports. While Beijing operates only one foreign naval
base in Djibouti, Chinese military vessels routinely visit Chinese commercial
ports, which could serve as crucial resupply points or repair facilities during
conflicts. Consequently, China is increasingly emphasizing civilian-military
interoperability in maritime infrastructure and other domains.
Restoring Western and Indian shipyards to the
necessary capacity will require a significant investment
Beijing
has blurred the line between commercial and military activities. In fact, all
nominally civilian ports constructed with Chinese assistance abroad are
designed with potential military use in mind. Additionally, Chinese law
mandates that all civilian-owned assets and operations must provide support to
the Chinese military in the event of a conflict. Presently, approximately
one-third of ports with Chinese company investments have hosted Chinese naval
vessels.
In
February, the shipping giant Maersk took delivery of a new cargo vessel that
meets the International Maritime Organization's zero-emission shipping
requirements. The vessel, named the Maersk Biscayne, was constructed at the
Jiangsu New Yangzi shipyard in China. Maersk has several more ships awaiting
construction at Chinese shipyards, highlighting the shipping industry's growing
dependence on Chinese facilities.
This dependency becomes a concern at a time
when tensions between China and the West are escalating. Unfortunately,
restoring Western and Indian shipyards to the necessary capacity will require a
significant investment of both time and resources.
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