China seizes the lifeline of global trade! 80% of freight relies on "it" and the next trump card is exposed

More than 80% of the world's cargo transportation relies on maritime transport. Mastering port and shipping technology is equivalent to mastering the important lifeblood of global trade. China is actively deploying smart ports, from driverless trucks, remote-controlled cranes to artificial intelligence (AI) systems, trying to gain a leading position in the next generation of port hardware and software. Beijing not only hopes to improve port efficiency through automation, but also actively exports relevant technologies overseas to expand its influence in the global supply chain.

According to Reuters, when leaders from various countries head to Shenzhen, China next week to attend the Asia-Pacific Economic Cooperation (APEC) summit, the automated equipment at Mawan Terminal is the epitome of China’s modern maritime trade layout. Beijing has promoted dozens of automated port projects and sees smart ports as key to the next round of global port and shipping competition.

The Ministry of Transport of China pointed out that China currently has 60 automated terminals, ranking first in the world, and plans to increase to 90 by 2030. Among them, the Xinqianwan Container Terminal in Qingdao is known as the world's first fully automated terminal. Each crane can handle 61 containers per hour, which is twice as efficient as a traditional terminal.

In comparison, U.S. port automation has progressed more slowly. A 2024 U.S. Government Accountability Office report to Congress noted that the top ten U.S. ports are less automated than similar ports in other countries. Kyle Chen, a researcher at the Brookings Institution, analyzed that the rapid advancement of automation in China is related to the lack of obstruction by independent trade unions, while American trade unions may slow down the related process due to concerns about unemployment.

China also hopes to turn the technological advantages accumulated in domestic ports into overseas business opportunities. Companies such as driverless truck manufacturer Westwell and Huawei are actively developing smart port technology. Among them, Westwell's driverless trucks have been put into operation at the Port of Felixstowe in the UK.

Beijing has also expanded its presence through the export of capital and equipment. A report released by the AidData research laboratory under the College of William and Mary in the United States in March this year pointed out that since 2000, China has provided approximately US$4.8 billion (approximately NT$157.92 billion) to 69 ports in 47 countries to assist in the purchase of port equipment, and invested another US$15.5 billion (approximately NT$509.95 billion) to build or acquire shares in overseas ports.

However, China still faces challenges in the field of port software. Previously, China-backed shipping data platform LOGINK had raised concerns in the United States, with Washington worried that Beijing might use it to track sensitive cargo and even gain access to competitors’ trade information. Reuters revealed last month that the platform had quietly collapsed, underscoring how difficult it is for China to get overseas markets to accept its shipping software.

China is also currently trying to break into the terminal operating system (TOS) market that has long been dominated by American companies. This type of software is responsible for planning container unloading, vehicle movement and customs information processing. China's state-owned China Merchants Port has deployed an independent research and development system in the Port of Paranagua, Brazil, and has expanded the technology to Sri Lanka, Greece, Italy and Türkiye.

China's Ministry of Transport has stated that whoever completes digital transformation first will gain an advantage in the next round of global port and shipping competition. However, Western officials and analysts worry that if China establishes a dominant position in port technology, it may further control supply chain information and even turn its technological advantages into economic pressure or surveillance tools.

Lemacher, the former head of the supply chain and transportation industry at the World Economic Forum, warned that China will gradually connect its scattered strongholds into a network through investment and pilot projects in various places, and ultimately form control over the global supply chain. This also allows China to seize the layout of smart ports, which is no longer just about improving transportation efficiency, but also affects the competition for global trade dominance.