Chinese Investments in Ports: What Are The Security Implications?

Barbed wire fence with shipping containers in background.

Chinese investments in key U.S. and Latin American ports raise serious concerns over national security, prompting experts to seek solutions.

Quick Takes

  • China’s influence in western ports poses strategic risks.
  • Concerns over potential security threats and destabilization.
  • U.S. seeks to counter China’s growing port investments.
  • Proposals include removing Chinese equipment from ports.

China’s Strategic Port Investments

The growth of Chinese state-owned enterprises in port operations across the U.S. and Latin America presents a significant challenge. Companies like COSCO Shipping own stakes in key locations, including the Panama Canal, raising red flags for U.S. security officials. These investments look innocuous but are under scrutiny for their potential “dual-use”—merging commercial activities with security operations.

The situation calls attention to China’s infrastructure innovations as part of the Belt and Road Initiative, which could compromise not only economic interests but also allow espionage and sabotage opportunities. The Chancay Port in Peru exemplifies strategic interest by cutting shipping time between continents, suggesting transportation benefits for Beijing.

Security Risks Identified by Experts

U.S. defense analysts have articulated fears that investments by Chinese firms range beyond the ports to digital infrastructure and telecommunication networks, potentially enabling intelligence gathering. The House Homeland Security subcommittee’s recent hearing emphasized that reliance on Chinese technology in port operations increases cybersecurity risks, which could lead to disruptions during a crisis.

Leland Lazarus, of the Brookings Institute, said, “PRC infrastructure projects could be “dual-use”—blending commercial and security purposes.”

Strategically located ports could give China leverage over global trade routes, similar to incidents like the blockage of the Suez Canal. There’s a possibility of thwarting trade or allowing Chinese naval forces unrestricted movement during wartime, making the Western Hemisphere’s infrastructure vulnerable.

U.S. Recommendations and Action Plans

To guard against possible Chinese influences, U.S. experts recommend a buyback program for ports under Chinese control and removing affiliated Chinese equipment. This would mitigate risks posed by Beijing’s expansive reach in regional infrastructure.

Matthew Kroenig, senior director of the Atlantic Council’s Scowcroft Center for Strategy and Security, said, “It poses a number of challenges. One, to the topic we just discussed, China is shipping fentanyl precursors through the Panama Canal. Second, by operating the ports there, including with surveillance technology, Chinese surveillance technology; they’re using that to collect information that’s going back to Beijing. [It] may not be classified information, but it’s sensitive information that China could use to exploit for an intelligence advantage. China could seek to hinder trade through the canal, which would have negative economic consequences for America’s wellbeing.”

Moreover, elevating the competitiveness of the U.S. port infrastructure while leveraging cultural affiliations with Latin American nations would reinforce good governance. This strategy aligns with the Monroe Doctrine, reinforcing the restriction against foreign control over vital infrastructure.

Sources:

  1. How are the United States and China intersecting in Latin America?
  2. Wakeup Call: The U.S. Risks Losing Latin America to China | The Heritage Foundation
  3. “Strategic Maritime Chokepoints”: Subcommittee Hearing Examines Threats from China’s Influence Over Panama Canal, Western Hemisphere Ports – Committee on Homeland Security
  4. Experts Warn of China’s Grip on Key US and Latin American Ports | The Epoch Times

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