Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Hong Kong protests could threaten city’s status as an international shipping hub, analysts say

Hong Kong protests could threaten city’s status as an international shipping hub, analysts say

China could move to grant further autonomy to mainland ports managing in and outbound shipments, in order to accelerate economic integration with Hong Kong. Shanghai has already upgraded and expanded free-trade zone with focus on shipping, with analysts expecting further relaxation of rules throughout China

Hong Kong’s status as an international shipping hub could be under threat, should China fast-track plans for economic integration due to the ongoing anti-government protests, analysts said.

While Beijing has never spoken publicly about the economic consequences of the escalating protests over the past two months, a widely shared view within China is that the central government should reduce its reliance on Hong Kong as its key financial and logistics gateway to the rest of the world.

This could result in mainland ports having greater autonomy in managing the shipment of goods into and out of China, analysts said.

China this month upgraded and expanded a free-trade zone in Shanghai, which covers an area about the Hong Kong Island and Kowloon combined, with the ambitious goal of becoming “China’s bridgehead integrating into a globalised economy by 2035”.

According to the plan, Shanghai free-trade zone will conduct trials on international ship registration and opening up new international maritime routes. In addition, it will allow foreign ships to use Yangshan port as a transit hub for containers shipping.

The new relaxations build on a move in 2016, when China eased cabotage rules – that is, the right to operate transport services – in Shanghai to allow foreign-flagged vessels to engage in domestic shipping, and pave the way for Shanghai to become China’s free port.

Dr Collin Wong Wai-hung, associate dean of the School of Decision Sciences at the Hang Seng University of Hong Kong, estimated Hong Kong could lose all transshipment rights in the non-Pearl River Delta region, which could translate into a loss of 2.4 million container twenty food-equivalent units (TEU) – a measurement of standard container sizes. Should China fully relax cabotage rules in other parts, this could dent Hong Kong’s annual container throughput (the cargo passing through the port) by 14 per cent.

“If you look at this instance, Beijing saw the benefits of such relaxation to the Shanghai free-trade zone, but it would also have a negative impact on other ports. We looked at other countries which have implemented similar changes, there were cases in which some shipping operators had to shut down their business, the same also happened to port operators. I believe after consideration [the central government] thought Hong Kong port should retain its transshipment business,” Wong said.

The Chinese central government had been conservative in changing cabotage rules across the country so that the chosen few ports, including Hong Kong and Shanghai, could boom. In 2017, after consulting academics, the shipping industry and port operators including those from Hong Kong, Beijing decided not to roll out free ports across the country, despite appeals from many local ports.

The logistics industry contributed 3.2 per cent of Hong Kong’s gross domestic product and 180,600 jobs in 2017, while transport services made up 29.2 per cent of Hong Kong’s service exports in 2017, according to Hong Kong government statistics.
The ongoing protests in Hong Kong could trigger Beijing
to fast-track economic integration with Hong Kong to tighten control and reduce economic impact, said Adam Ni, a China researcher at Macquarie University in Sydney.

Hong Kong’s importance as a bridge between China and the outside world has waned. Prominent cities such as Shanghai and Shenzhen have taken some market from the former British colony, which has positioned itself as a business-friendly hub for international finance and trade, with its own legal system.

“More dependency would make the Hong Kong population less inclined to resist Beijing's rule, but also hollows out support among business for upsetting their growing business interests with mainland China. I believe economic integration will be fast tracked because it helps with enhancing control and reducing economic grievances, which is an important factor in the current unrest,” Ni said.

Peter Levesque, chief executive of Modern Terminals, a member of the Hong Kong Seaport Alliance, a coalition formed by four container terminal operators in January, said that Hong Kong port needed to complement the Greater Bay Area in taking advantage of the cabotage restrictions in mainland China.

“It means the port cluster would have 65 million containers of throughput. By coming together as Hong Kong Seaport Alliance, we want Hong Kong to complement the Greater Bay Area in that port cluster,” said Levesque in June.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
×