China's geopolitical influence on the maritime industry

• Main Author: Ng, Jing Jie
• Other Authors: Chiu Sai Hoi, Benson
• Format: Final Year Project
• Language: English
• Published: Nanyang Technological University 2023
• Subjects: Engineering::Maritime studies
• Online Access: https://hdl.handle.net/10356/172611
• Institution: Nanyang Technological University

This report analyses the geopolitical influence of China and its impacts on the maritime industry through analysis of key events in the SCS, the global trade projects initiated by China such as the BRI, RCEP and China’s COVID-19 response since 2019. The report aims to provide insights from a political perspective to various maritime and business stakeholders with regards to the impacts of China’s geopolitical influence and the importance of taking positive action as recommended in the report. The research design of this study is based on a combination of 22 survey responses and 6 interviews of personnel with various maritime backgrounds, with both quantitative and qualitative aspects, supported with credible secondary sources like journals and news sites. An analysis of the findings from the primary and secondary research was done and found that while the BRI and RCEP is largely positive for the maritime industry, it is likely to have limited impacts in the coming years due to the volatile geopolitical environment. The SCS conflict is perceived to have limited direct impact on the daily operations of the maritime industry, but fears of an escalation of war is a major concern and to be avoided. The impacts of China’s COVID-19 response were largely negative for the maritime industry. Although there are some benefits that arose, it prompted a major paradigm shift from relying on China too heavily due to the major disruptions to global supply chains. There was a general mixed consensus on the impacts of President Xi’s consolidation of power, but most maritime entities have accepted that it is something that can be navigated with minimal direct impact on the industry. The discussions and recommendations are then built on the findings from the primary and secondary research, touching on three key ideas of: (1) Diversifying supply chain, (2) developing crisis management strategies and framework and (3) capitalising on new technology, namely AI. The key benefits and limitations of the recommendations are also discussed. The report concludes highlighting the significance of geopolitical impacts on the maritime industry, and how it needs to be factored into decision making processes to prevent significant disruptions as it did during the COVID-19 pandemic, through a multi-faceted approach.