One of the world's largest ocean carriers has been blacklisted by the US government. Cosco Shipping, the fourth-largest carrier globally and the largest in China, was identified on Tuesday by the Department of Defense as a 'Chinese military company'. Alongside Cosco, two prominent Chinese shipbuilders, China Shipbuilding Trading and China State Shipbuilding, were also named.
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Although the blacklist does not impose direct penalties, it is likely to hinder China's ability to collaborate with US companies and damage the reputation of the entities involved. According to Bloomberg, China has been strengthening its position in the global shipbuilding sector, accounting for nearly 60% of the global orderbook in the first quarter of last year. This dominance has heightened US concerns.
The United States has a limited presence in the shipbuilding industry. Only one American company, Austal USA, ranks in the global top 20 at number 14, according to port equipment supplier Ouco. The disparity is stark; the US constructs just one container ship for every 359 built by China.
Similarly, the carrier industry reveals a significant gap. The US has only one firm in the global top 30, Matson, which ranks at number 28. These figures underline the challenges the US faces in countering China's dominance in the maritime sector.
China's expanding influence in global shipping continues to fuel unease in Washington. While the blacklist may not directly disrupt operations, its implications for partnerships and reputational standing could present long-term challenges for the blacklisted companies.
Source: www.furnituretoday.com