China’s high-tech ports push raises global trade ambitions, sparks security concerns

China is accelerating efforts to transform global maritime trade through automated ports, artificial intelligence and digital shipping systems, seeking to strengthen its position in an industry that handles more than 80% of goods traded worldwide by volume. However, Beijing's growing influence over port infrastructure and technology is raising concerns among Western officials and security analysts about potential strategic dependencies, according to Reuters.

The Mawan Terminal in Shenzhen offers a glimpse of China's ambitions. Equipped with driverless trucks, remotely controlled cranes and AI-powered systems, the facility is among dozens of automated port operations across the country that Beijing hopes will give it a competitive advantage in global shipping.

According to a Reuters report, Western officials and analysts fear that China's push to export its port technologies could extend its influence over international trade networks, particularly as Beijing already holds significant stakes in ports around the world.


The concerns include the possibility of China gaining dominant positions in emerging maritime technologies, potentially using them for economic coercion or exploiting technological vulnerabilities to monitor rivals and disrupt trade networks during a crisis.

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The concerns come as China prepares to host the Asia-Pacific Economic Cooperation (APEC) summit in Shenzhen on November 18-19. Beijing has indicated that its ambitions to modernise maritime trade remain firmly on track, proposing to lead working groups on electronic bills of lading and customs databases powered by artificial intelligence and big data, the report stated.

Electronic bills of lading are digital versions of documents traditionally used as receipts for seaborne cargo. China's transport ministry has argued that countries completing their digital transformation first will gain an advantage in the next phase of global port and shipping competition.

China takes lead in port automation

China believes it is already ahead of other countries in port automation. According to its transport ministry, the country has 60 automated terminals, the highest number globally, and aims to increase that figure to 90 by 2030, according to a Reuters report.

One of its flagship facilities is the New Qianwan Container Terminal in Qingdao, which China describes as the world's first fully automated terminal. The facility says each crane can handle 61 containers an hour, more than twice the productivity of conventional docks.

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The United States, meanwhile, has been slower to embrace port automation, partly because of opposition from labour unions concerned about potential job losses. A 2024 report by the US Government Accountability Office found that the country's 10 largest ports were less automated than their international counterparts.

The report stated that China's rapid progress has partly been enabled by weaker resistance from independent labour unions, which have greater influence in countries such as the United States.

The country's extensive network of automated ports is also providing domestic technology companies with a large testing ground for products that can subsequently be marketed overseas.

Chinese companies, including autonomous truck manufacturer Westwell and telecommunications equipment giant Huawei, are developing and exporting smart-port technologies. Westwell's driverless trucks are already operating at Felixstowe, Britain's busiest container port.

Belt and Road strategy expands China's reach

China is increasingly using its Belt and Road Initiative model to promote port technology in developing countries, offering equipment and digital infrastructure that Beijing says can improve efficiency and facilitate trade.

According to a March report by AidData, a research laboratory at William & Mary university in the United States, China has provided approximately $4.8 billion in financing for port equipment since 2000 across 69 ports in 47 countries. This is in addition to the $15.5 billion Beijing has spent on building foreign ports or acquiring stakes in existing facilities, Reuters reported.

However, expanding the reach of Chinese port hardware has proved easier than convincing international operators to adopt its software, Reuters reported.

China seeks to challenge Western dominance in port software

China's efforts to establish its own shipping data infrastructure have faced setbacks. As previously reported by Reuters, the China-backed logistics data platform LOGINK has quietly collapsed after attracting concerns in Washington over the possibility that it could provide Beijing with access to sensitive global shipping information.

The United States had raised concerns that the platform could help China track sensitive cargo, including military equipment, while giving domestic companies an advantage over Western competitors. Washington subsequently pressured allies and international organisations to distance themselves from the system, Reuters reported.

China has also faced difficulties in challenging US companies that have traditionally dominated the market for terminal operating systems (TOS). These platforms manage operations across container terminals, including cargo unloading, vehicle movements and customs processing.

China's transport ministry has identified reducing dependence on foreign terminal operating systems as a major priority, arguing that replacing overseas software could save domestic port operators tens of millions of dollars.

There are indications that Beijing is making progress. A 2025 filing by state-backed China Merchants Port highlighted a transport ministry project aimed at replacing foreign systems at international ports. The company said it had completed the installation of its domestically developed terminal operating system at Brazil's Paranagua port.

China Merchants Port has also introduced its software at terminals in Sri Lanka, Greece, Italy and Turkey.

Supply chain control emerges as strategic concern

China's growing presence in global port infrastructure and technology is increasingly being viewed through the lens of supply chain security.

Reuters quoted Wolfgang Lehmacher, a consultant and former head of supply chain and transport industries at the World Economic Forum, as highlighting China's long-term approach of combining investments and pilot projects to gradually expand its technological footprint across international shipping networks.

The approach could allow individual projects to develop into a wider interconnected system, increasing the influence of Chinese companies over critical maritime infrastructure and logistics operations.

As global trade becomes increasingly dependent on digital systems, control over the software, data and equipment underpinning shipping operations could become a significant source of geopolitical and economic leverage.

For Beijing, the objective is to establish itself as a leading provider of the technologies shaping the future of maritime commerce. For Western governments, the challenge will be balancing the efficiency gains offered by Chinese automation with concerns over strategic dependence and the security of global supply chains.

(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times)