Ocean Network Express is purchasing a 51 percent ownership stake in the TraPac terminals at the ports of Los Angeles and Oakland and the Yusen terminal in Los Angeles. Source: Journal of Commerce. Photo credit: Angel DiBilio / Shutterstock.com.
China is not a democracy. Their government can dictate that certain goals be met, such as CO2 emission reductions, or increases in production for certain products like solar panels. They don't need to wait for supply/demand forces to go to work, the leaders announce an objective and their citizens respond. Not doing so can result in painful consequences.
In 2013 China announced the Belt and Road Initiative. Since that time China has financed and built many projects to realize their goals. It is truly a global initiative as it reaches North and South America, Africa, and Europe. Some of China's recent European investments are discussed in The National Interest. Recent moves in the U.S. are discussed in this Universal Cargo report, and here at the Journal of Commerce.
My take: Historically "the public" doesn't care so much about who owns what company, as long as prices are low and service is good. We need to start caring a lot more if we want either to be true. Monopolies and oligarchies increase profits for the owners - but always at the expense of customers, workers, and even countries. We saw first hand the effect of disruptions in China and their effect on U.S. supply chains. How will that change if China owns container production, terminal operation, and carrier operations?
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