China has strategically expanded its global influence by investing in 129 ports across numerous countries, primarily in the Global South. This extensive investment, facilitated through state-owned enterprises, has sparked concern among Western nations. China’s ambitious maritime ventures are not just limited to trade; they also encompass geopolitical strategies, including naval expansion and resource acquisition.
In Africa, China's port investments have skyrocketed from two ports in 2000 to a staggering 61 facilities across 30 countries by 2022. One of the most notable developments is the establishment of a naval base in Djibouti, a country located at a critical juncture for international shipping routes. This move underscores China's strategic military interests alongside its commercial pursuits.
The Chinese state-owned shipping giant, COSCO, made headlines with its $1.6 billion acquisition of a 60% stake in Greece's Piraeus Port. This investment marks China's influence in Europe, providing a crucial foothold for maritime trade within the continent. Worldwide, China holds majority stakes in 17 ports, with 14 possessing the potential for naval use, raising alarms about military implications.
Africa's rich resources have been a significant draw for China, with port deals granting access to rare earth elements and other vital minerals. As the world's largest importer of copper ore, predominantly sourced from Chile, Peru, and Mexico, China relies on stable port access to maintain its hefty import demands. From 2010 to 2019, China invested $11 billion in overseas port development, a testament to its commitment to securing global trade routes.
A considerable portion of global container trade—over 27%—now flows through terminals where leading Chinese firms hold direct stakes. This dominance in container trade highlights the extensive reach of China's maritime strategy. In Latin America, China's port investments have served as a counterbalance to trade tensions with Europe, securing its position as the region's top trading partner.
In Brazil, China has gained control over South America's largest container terminal at the Port of Santos, reinforcing its grip on regional trade. Meanwhile, in Peru, China is constructing a new $3.6 billion deepwater mega-port in Chancay, further cementing its maritime influence in Latin America.
China's need for stable access to key trading routes is driven by its goal to meet global demand for Chinese exports. The country has made aggressive moves into Latin America, establishing itself as a dominant trading force. Moreover, China's ongoing construction of another naval base in Equatorial Guinea signals an escalation in its strategic military presence on foreign shores.
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