- Beijing’s economic control of port operations at strategic chokepoints across the world, many of which are part of the Maritime Silk Road initiative, pose a threat to the United States and its allies.
- Two Chinese state-owned firms, COSCO and China Merchant Ports, control 12.6 percent of global throughput. Beijing could also exert significant influence on the third-largest Chinese player, privately-owned Hutchison Port Holdings, which works extensively with PRC state-owned enterprises and has participated in strategically significant projects.
- Hutchison also controls two ports on the Panama Canal. Under pressure from the United States, Panama’s President Murillo announced his government will not renew the memorandum of understanding on the Maritime Silk Road signed with Beijing in 2017.
- Leveraging the economic power of state-owned shipping firms is part of Beijing’s strategy to become a strong maritime power.
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