![]() The size and focus of Beijing’s efforts accelerated after the 2008 financial crisis when the global maritime industry suffered a collapse in demand. 2 Although still a nascent naval power, China has already become a dominant player in the commercial maritime space.Ĭhina’s maritime rise has been driven by focused state support beginning in the early 2000s after China’s accession to the World Trade Organization (WTO). 1 They also produce 96 percent of the world’s shipping containers, more than 80 percent of the world’s ship-to-shore cranes, and own seven of the ten busiest ports in the world (including Hong Kong). Future research will be needed to understand Beijing’s evolving playbook for supporting the global rise of strategically significant industries.Ĭhinese companies are increasingly dominant across the entire global maritime supply chain, controlling the world’s second-largest shipping fleet by gross tons and constructing over a third of the world’s vessels in 2019. While most analysis focuses on more traditional types of state backing, most notably direct subsidies, we find that China has evolved increasingly sophisticated financial tools to select and support winners that render our traditional understanding of China’s state capitalist system largely outdated.Owing to data limitations and the opacity of China’s political system, this conservative estimate does not include direct subsidies to unlisted firms, indirect subsidies, state-backed fundraising, preferential borrowing rates, and other nonmarket advantages from China’s state capitalist system. This includes financing from state banks ($127 billion) and direct subsidies ($5 billion). Combined state support to Chinese firms in the shipping and shipbuilding industry totaled roughly $132 billion between 20, according to CSIS analysis. ![]() Chinese companies are increasingly dominant across the maritime supply chain, aided by a complicated and opaque system of formal and informal state support that is unrivaled in size and scope.
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