China's state-led international port development: Challenges for port states

Christopher J. Watterson; Jean Annet de Saint Rapt; Eunha Yun

doi:10.1016/j.marpol.2023.105697

China's state-led international port development: Challenges for port states

Christopher J. Watterson^*, Jean Annet de Saint Rapt, Eunha Yun

^*Corresponding author for this work

War Studies

Research output: Contribution to journal › Article › peer-review

1 Citation (Scopus)

Abstract

Chinese state-owned enterprises are playing an expanded role in international port development, utilising their privileged access to state capital to finance, build, and operate hundreds of ports globally. This paper argues that the political nature of these investments vis-à-vis state ownership of the investing firms has introduced an array of unique economic, strategic, and political risks for recipient port states. We identify four such risks—port overcapacity, military entrapment, commercial and military espionage, and economic coercion—we argue that these risks flow specifically from state ownership of the port investor, and we demonstrate that these risks manifest in China's state-led foreign port investments. On this basis, we argue for FDI screening at the national level to manage the risks associated with foreign investments in critical infrastructure.

Original language	English
Article number	105697
Journal	MARINE POLICY
Volume	155
DOIs	https://doi.org/10.1016/j.marpol.2023.105697
Publication status	Published - Sept 2023

Keywords

Belt-and-road
Foreign direct investment
Port development
State-owned enterprises

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1016/j.marpol.2023.105697

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title = "China's state-led international port development: Challenges for port states",

abstract = "Chinese state-owned enterprises are playing an expanded role in international port development, utilising their privileged access to state capital to finance, build, and operate hundreds of ports globally. This paper argues that the political nature of these investments vis-{\`a}-vis state ownership of the investing firms has introduced an array of unique economic, strategic, and political risks for recipient port states. We identify four such risks—port overcapacity, military entrapment, commercial and military espionage, and economic coercion—we argue that these risks flow specifically from state ownership of the port investor, and we demonstrate that these risks manifest in China's state-led foreign port investments. On this basis, we argue for FDI screening at the national level to manage the risks associated with foreign investments in critical infrastructure.",

keywords = "Belt-and-road, Foreign direct investment, Port development, State-owned enterprises",

author = "Watterson, {Christopher J.} and {de Saint Rapt}, {Jean Annet} and Eunha Yun",

note = "Publisher Copyright: {\textcopyright} 2023 The Authors",

year = "2023",

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doi = "10.1016/j.marpol.2023.105697",

language = "English",

volume = "155",

journal = "MARINE POLICY",

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TY - JOUR

T1 - China's state-led international port development

T2 - Challenges for port states

AU - Watterson, Christopher J.

AU - de Saint Rapt, Jean Annet

AU - Yun, Eunha

PY - 2023/9

Y1 - 2023/9

N2 - Chinese state-owned enterprises are playing an expanded role in international port development, utilising their privileged access to state capital to finance, build, and operate hundreds of ports globally. This paper argues that the political nature of these investments vis-à-vis state ownership of the investing firms has introduced an array of unique economic, strategic, and political risks for recipient port states. We identify four such risks—port overcapacity, military entrapment, commercial and military espionage, and economic coercion—we argue that these risks flow specifically from state ownership of the port investor, and we demonstrate that these risks manifest in China's state-led foreign port investments. On this basis, we argue for FDI screening at the national level to manage the risks associated with foreign investments in critical infrastructure.

AB - Chinese state-owned enterprises are playing an expanded role in international port development, utilising their privileged access to state capital to finance, build, and operate hundreds of ports globally. This paper argues that the political nature of these investments vis-à-vis state ownership of the investing firms has introduced an array of unique economic, strategic, and political risks for recipient port states. We identify four such risks—port overcapacity, military entrapment, commercial and military espionage, and economic coercion—we argue that these risks flow specifically from state ownership of the port investor, and we demonstrate that these risks manifest in China's state-led foreign port investments. On this basis, we argue for FDI screening at the national level to manage the risks associated with foreign investments in critical infrastructure.

KW - Belt-and-road

KW - Foreign direct investment

KW - Port development

KW - State-owned enterprises

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DO - 10.1016/j.marpol.2023.105697

M3 - Article

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SN - 0308-597X

VL - 155

JO - MARINE POLICY

JF - MARINE POLICY

M1 - 105697

ER -

China's state-led international port development: Challenges for port states

Abstract

Keywords

UN SDGs

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