China’s port system development and its internationalisation – with special reference to belt and road initiative

The global trade is traditionally western-world oriented, thus enormous research focuses on western trade systems and ports. This carries with it the danger of neglecting developments of trade and ports elsewhere. The paper, therefore, aims to fill in this gap and discuss the port system of China, an important player in global trade, and its recent development and internalisation under the Belt and Road initiative. Since 1978 China has significantly reconstructed and opened its market. Its ‘Open Door’ policy has led to economic growth. This paper studied changes in the ports planning, structure and governance in China in the 21st century which China started further market reform since China joined in the WTO in 2001. China has undergone market reforms, introducing or amending trade-related laws, such as PRC Merchant Port Act of 2003. This paper focuses on China Merchants Port Holdings, China Ocean Shipping (Group) Company (particularly COSCON and COSCO Pacific), and China Shipping Terminal Development. The choice of these representatives is appropriate because they are the top global and international terminal operators and thus analysis on their economic activities sheds light on understanding China’ ports and terminal operators. This paper finds that Chinese operators in China and Hong Kong are not as geographically diverse as other other international terminal operators. However, a striking change is occurring that China’s port operators have taken internationalisation strategy, possible under the auspices of the Belt and Road Initiative, and involved in more and more ports outside China.