EU port strategy: COSCO’s bid for Zippel sets a precedent - China.Table

"To anticipate developments twenty or thirty years ahead, policymakers need appropriate instruments. These should be developed at the European level," says Frans-Paul van der Putten, an analyst at the Clingendael Institute, who welcomes the port strategy. In his view, the risks associated with such investments can only be assessed over longer time horizons and from a pan-European perspective. (…) It is not unusual for COSCO to seek vertical integration of its supply chain. "COSCO generally acts in line with its commercial interests, as the company has a mandate from the Chinese state to expand internationally and become more competitive. But you never know when political incentives might begin to influence the company's behavior," says van der Putten. "That possibility is always there and must therefore be monitored." The challenge with potential risks, however, is that it is impossible to know when they might materialize. This makes it tempting to postpone dealing with them and focus on more immediate problems. "When assessing such investments, the broader context should be taken into account, not just this single deal. For example, the link between the investment in the Hamburg terminal and this company, but also the broader European picture." This also includes other Chinese companies investing in Europe's port infrastructure. (…) Van der Putten outlines one scenario in which Chinese state control over an entire supply chain could become problematic: "If a Chinese state-owned company — or a group of Chinese state-owned companies — had the power to decide where container flows go and where they do not go, that could have an impact. Even without full control, it would theoretically be possible to shift cargo flows from one member state to another in order to influence potential divisions or disagreements between European governments." The collection of sensitive information or cyberattacks on European infrastructure could also be facilitated by integration into European logistics networks. "

Article by Julia Fiedler. Click here for the full article on the website of Table Media. A German version is available here.