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.
“China … has the potential to fill infrastructure capacity voids. Port construction and connectivity will mean investment in landings, processing, transit, and trading points for the Chinese marine catch in East Africa,” he said.
The report particularly points to the Chinese-led refurbishment of the Beira Fishing Port in Mozambique, with the China Export Import Bank lending USD 120 million (EUR 105.7 million) to the Mozambican government for the port. In exchange for the investment, Chinese fishing companies such as CNFC Overseas Fishery operate out of the port.
It’s not just a national government priority either.
The report also points to the provincial government of Zhejiang backing a port in the Pacific Island nation of Kiribati. Notably, Zhejiang-based seafood firm Ocean Family maintains a major presence in Kiribati.
As the U.S. has pulled back from many forms of international funding, including through major cuts to the United States Agency for International Development, countries like Somalia are turning more toward China than ever before, opening up even greater opportunities for China to expand its international presence.
“There is a concerted effort to build infrastructure, improve the management of marine resources, and implement sustainable fisheries practices. This includes opening up opportunities for both local and foreign investment to strengthen the sector and create long-term economic benefits for Somalia,” Nur Daud Ibrahim, a fisheries officer at the Somalian Ministry of Fisheries and Blue Economy, told SeafoodSource in February.
Besides Africa and the Pacific Islands, China has also turned its eyes toward South America, specifically the Argentine province of Santa Cruz. In October of last year, Chinese distant-water fishing firm Fuzhou Hongdong Pelagic Fishery Co. signed a memorandum of understanding with Santa Cruz that would would see Hongdong invest in the modernization of five ports in the region.
"This project is critical to strengthening the value chain of our maritime resources, generating jobs and modernizing provincial ports," Santa Cruz Governor Claudio Vidal said at the time. "It's part of our government's commitment to transforming Santa Cruz, leveraging on every project and every opportunity so our people have more and better working conditions. We need to reactivate our ports, and we’re working, researching, and developing strategies to achieve that, protecting our resources and generating the genuine jobs our port cities need."
Overall, courting several international markets across diverse regions has helped the sector avoid geopolitical challenges such as tariffs and trade wars, as well as domestic issues like weak consumer spending power. The strategy seems increasingly prescient in the wake of U.S. President Donald Trump’s tariffs on China.
“This [international] approach serves to bypass the intricate and complex international political stage on one hand and, on the other hand, to share China’s relevant experiences in distant-water fisheries management,” Shanghai Ocean University’s Tong Huaming said in a recent research paper titled “Research on Participants in China’s Distant-Water Fisheries Management.”
