Responding to China’s
Growing Inuence in Ports
of the Global South
By Daniel F. Runde and Austin Hardman
P
ort infrastructure around the world is critical to U.S. economic and military security. Although
vitally important, it is an investment area where China is outpacing the United States. China
now dominates maritime trade in terms of volume, shipbuilding activity, and construction
and ownership of ports around the world. China’s position puts U.S. economic interests and national
security priorities at risk.
A stratey to counter China’s inuence in Global South ports is an important piece of a larger
program to enable a better oer to the Global South. Actions include creating a port infrastructure
stratey, promoting transparency in global port infrastructure procurement, and using other tools
to better compete against China. Several policy recommendations are not unique to ports but apply
to other infrastructure investment areas, such as undersea cables or digital architecture. China’s
dominance of overseas ports is well established, but the U.S. policy response is lacking. This policy
brief initiates a much-needed conversation and oers preliminary suggestions for consideration and
further assessment.
The Global South’s Demand for Port Infrastructure
During the past 25 years, international trade patterns have shifted in favor of the Global South. Even
though North-North trade is responsible for the biggest share of international trade (37.1 percent),
South-South trade has increased by 14.1 percent since 1995, reaching a 25 percent share. Trade
between developing countries has increased by an average annual rate of 9.8 percent since 2000,
reaching $5.3 trillion in 2021. Over the same period, world trade grew at an annual rate of 5.5 percent.
According to the International Monetary Fund (IMF) 2024 World Economic Outlook, world trade
is expected to increase by 3 percent in 2024 and by 3.3 percent in 2025. As a result, the demand for
port infrastructure from the Global South will continue to rise as these countries seek to develop and
integrate into global trade.
Maritime transport is the backbone of international trade. Around 80 percent of the volume of
international trade in goods is carried by sea; this gure is even greater for developing countries.
Lower-income countries and small islands are 1.5 to 2 times more reliant on their ports for global trade
than the global average. High-quality port infrastructure supports successful economic growth,
especially in export-driven economies in developing regions. It attracts investment in production
