China to become knowledge center for the shipping industry

China is well positioned to lead the international shipping industry in establishing a world innovation and knowledge center for sustainable transportation, officials and industry insiders said at the inaugural World Maritime Merchants Forum on the theme of “Leading the Trend”. It was hosted by China Merchants Group, the Baltic and International Maritime Council, the International Chamber of Shipping and the Hong Kong Shipowners Association. The forum aims to expand cooperation in the shipping chain, promote resource sharing and establish a new global shipping ecology amid the great changes of digitalization and decarbonization. Li Xiaopeng, China’s Minister of Transport, proposed strengthening cooperation through infrastructure construction and policy synergy within the international shipping industry to build the 21st Century Maritime Silk Road. The role of the shipping industry in the global economy is as crucial as the blood vessels to the human body, as around 90% of traded goods are transported via water, said Yin Zonghua, Deputy Director of the Liaison Office of the Chinese government in Hong Kong. China has the most connected shipping networks in the world, is the largest trading partner of more than 120 countries and regions worldwide and has seven of the world’s 10 biggest ports.

With the optimization of China’s industrial chains, trading with neighboring countries has increased, said Xu Lirong, Chairman of China COSCO Shipping Corp. In the first eight months of this year, China’s trade with member nations of the Association of Southeast Asian Nations (ASEAN) has reached CNY3.59 trillion, an increase of 22.8% year-on-year, he said. The Regional Comprehensive Economic Partnership (RCEP) agreement also further consolidated China’s position as a global supply chain hub and covers about 30% of the world’s gross domestic product (GDP), trade and population. China’s direct investment in RCEP member countries reached USD15.44 billion in 2020, surging 34% year-on-year.

However, the shipping industry still faces bottlenecks and obstacles, said Miao Jianmin, Chairman of China Merchants Group, referring to a structural imbalance and great volatility of business operations, an inadequacy to adapt to emergencies, and challenges in carrying out industrial decarbonization, the China Daily reports.