Global trade leaders have recently discussed the idea of moving some of their production or dispersing it across Asia to loosen their dependency on China. However, experts believe Asian countries, such as India and Vietnam, are yet to match China’s capacity to handle large trade volumes at one time.

Significant investments are required in the rest of Asia to facilitate the manufacturers’ shift and global trade decentralisation, says a report by the Financial Times. In addition to expanding port infrastructures, countries need to invest in their manufacturing capacity.

A simple comparison paints a clear picture of the disparity between the two regions. For example, China has 76 container terminals with the capacity to handle 14,000+ TEU vessels, while countries south and southeast of Asia have only 31. The USD 40bn investments made by China between 2016 and 2021 enabled it to handle up to 80% more containers than its south and southeast Asian counterparts, reported the Financial Times, citing figures from data group Dynamar and the UN.

Rodolphe Saadé, chief executive of CMA-CGM, told the Financial Times last month that it could take “five or ten years” for India and southeast Asia to build terminals for large ships and “play a different, bigger role.”

In addition to the major role Chinese ports play, the country's port power stretches beyond its geographical borders. According to researchers, China and Hong Kong own or operate more than 90 ports in 53 countries. Chinese port investors are mainly state-owned companies, with the largest being China Shipping Corporation (COSCO) and China Merchants Group (CMG).

A 2020 Nikkei Asia report shows that between 2010 and 2019, Chinese companies invested in 25 port projects in 18 countries, spending almost US$11 billion overseas, writes Maritime Executive. Analysts have raised concerns if this pace of investment continues, China could become a dominating global shipping power.