The Chinese government recently intervened in the sale of a Hong Kong-based port operator’s assets to a U.S. investor – a move that has delayed the deal and underlined the importance the nation places on maintaining maritime assets, especially if they serve as important bases for its distant-water fleet.
Hong Kong-based CK Hutchison sought to sell its port division to a consortium led by New York-headquartered investment firm BlackRock, but the deal soon became the subject of a probe by Chinese state agencies, particularly the State Administration for Market Regulation (SAMR), which has delayed the deal.
Though the government attributed the intervention to ensuring the sale aligns with fair market competition, the move also aligns with other Chinese priorities, including maintaining and increasing its global footprint of ports specifically underlined in the Maritime Silk Road – a policy blueprint which commits China to creating three “blue economy corridors” connecting China’s eastern and southern coasts to global ports.
The blueprint was the focus of a recent research report by Chinese academic Juan He at Shanghai Jiao Tong University.
Titled “From Distant-Water Fisher to Investor: Enhancing China’s State Responsibilities for Legal and Sustainable Fisheries in Coastal Africa,” the report notes how port infrastructure investment remains a Chinese strategic priority, resulting in significant investments in East Africa and elsewhere in order to provide a logistical boost for the Chinese distant-water fishing fleet...
