Research Proposal: Container Port Competition Between China and Hong Kong
Synopsis The research that is proposed here centers on the relationship that exists between the ports in Hong Kong and China, specifically South China, in terms of their competition with each other and their level of cooperation. Competitive strategies and degrees of cooperation have been changing drastically in the past few decades as the region and more of the world has opened up to trade, and dealing with capacity issues as well as other logistical problems has forced the very nature of competition and cooperation amongst commercial ports to change drastically (Song, 2002; Song, 2003; Cullinane et al, 2004). Witnessing the ongoing development in Hong Kong and the political and commercial/economic tensions between Hong Kong and China has been a major impetus in this research.
Aims and Objectives The aims of this research will be to establish a greater understanding of the nature of the current competition between ports in Hong Kong and in China, specifically South China, determining the degree of this competition and its impact on trade, and identifying any competitive efforts that might exist between ports and the motives behind this cooperation. Objectives that will help achieve these aims include identifying business patterns at the ports in question and determining the connections between the political and commercial ties of China and Hong Kong. Through these aims and objectives, the
China was the most powerful maritime force for almost three decades during the 14th century. The world recognized the Chinese for their fine artisan skills, which included creating stunning porcelains and silks. They also had great marine navigation skills, vast knowledge in astronomy and advanced firepower technology. Before the Ming Dynasty, the Yi citizens of China involuntarily stopped working on the land, hence had to seek for alternatives in the sea for survival. A century before Columbus plus his allied Europeans started their entry into the Modern World, seven voyages of massive castoffs commanded by the eunuch Zheng He ventured through the China Seas to East Africa, throughout Korea and Japan. This occurred between 1405 and 1433, during the reign of Zhu Di. Using their skills, they conquered the forces around the Indian Ocean, making China the naval ruler. In the book When China Ruled the Seas, Louise Levathes explores the historic timeline of China’s dynamic transformation until her rise and dominance as a marine power. Discussed below is China’s overall
One of the exploitations done by the British was that they took advantage of a weak Chinese Navy to forcefully take five ports from them among them being Hong Kong. The British Navy engaged the Chinese in a war where they won with much ease and were granted access to the ports (Cain & Hopkins, 2016). They used them as trade channels. Another
China is both a threat and an opportunity for Australia. Trade and security concerns have both negatives and positives towards Australia’s relations with the Asian ‘superpower’. In recent years we have seen how the relations between Australia and China have changed, through their radically different traditions. This has led to the idea that China is a great resource for trade, it has also led to the idea that China is a large threat to Australia’s security. This essay will discuss the rapid growth of China in recent years compared to Australia’s growth, but also the increasing threat level China poses, and finally the bursts of opportunity China gives to Australia. Overall there is arguments for both sides, China is both a threat and an opportunity
Secondly, because Shanghai is a coastal city, the method of sea shipping is especially convenient for Shanghai’s factories to import or export goods. Apart from the sea shipping transportation method, Shanghai plays an important role that connects northern part of China and Southern part of China. Therefore, both the number of railway lines and the flight lines are relatively larger than other cities. Firms located in Shanghai are able to find advantages from the convenient transportation. Moreover, being a bridge to connect the north and the south gives Shanghai more opportunities to attract firms from all over China to invest in Shanghai.
Trade had a positive and/or negative effect on the people who were located in the regions of China and the Americas. People in the world region of China had many positives. The Americas had both positive and negative results. Some positives for China included, a good ripple effect in its economy and a lot of tributes being sent. Positives for the Americas included an expansion of knowledge, as well as discovering more from the world.
With so many goods brought into Quanzhou’s port, the government enabled more protection to ensure safety within; whether it
many goods and services targeted to the mainland Chinese market was traded via Hong Kong
When maritime expansion began, China participated not because they were interested in trading rather they wanted to broaden their empire to show the rest of the world their power and achievements. Trade did come into play when the Ming sought to expanding the empire, however it was more about curiosity of the new lands. China did set up trading with Western countries for a short period of time before they realized that the West did not offer them as much as they had hoped for. The Europeans still were interested in trading with China so they allowed one trading port only, Macao. This did not last long as China began to think Europeans were a threat to their way of life and decided to limit their interaction with them. Eventually the Dutch East India Company had formed and showed favor in China by acknowledging the emperors superiority. Although China had wanted to decrease their contact with Westerners, especially trading with them, Chinese scholars and intellects took interest in the Jesuits and allowed them to enter their country on a limited basis.
Ports attract industry and thus development. Larger settlements develop to accommodate the shipping trade like warehousing, processing and commerce. Shanghai is the busiest port in the world and has developed because of this. Due to its excellent port, Shanghai has been a leading power of China's economic and trade development since ancient times. Its economy has increased by over 10% for 15 consecutive years and it accounts for 25% of the total value of China's imports and exports and 12.5% of the total revenue. By being in the coastal zone it has been a beacon for development and it is that has allowed it to gain the position of the third highest GDP in China. Shanghai has and will continue to develop because of its location near the
When it comes to the political profile, seven different countries have competing maritime claims (mostly over the Spratly and Paracel Islands), some of which become even more complicated as some overlap with other nations’ Exclusive Economic Zones (EEZ). Despite the “intraregional distrust, deeply rooted historical issues, and rapidly increasing military spending” in the region surrounding the South China Sea, one expert argues that “not only has the conflict not escalated into a serious military conflict; it has, in fact, been mitigated… in fact, a more stable peace has developed.” (Costlow, 2012, p.6).
The U.S. trade deficit has risen more or less steadily since 1992. In the second quarter of 2004, the trade deficit relative to GDP surpassed the 5 percent mark for the first time. Many economists already considered trade deficits above 4 percent of GDP dangerously high. The fear is that continued growth in this external imbalance of the U.S. economy will ultimately spook overseas investors. http://www.americanprogress.org/issues/2004/09/b193700.html
Transnational issues are conflicts that typically go beyond national boundaries. For the conflict between Hong Kong and China, this is not the case because Hong Kong is a part of China that is ruled under the “one country, two systems” principle, where certain distinct regions like Hong Kong and Macau would keep their own capitalist political and economic systems while still being a part of China. It is important to note, however, that Hong Kong and Macau were former colonies of Britain and Portugal respectively until the late 1990s. As a result of the 100 years that Hong Kong spent as a colony of Great Britain, there are significant ethnic and cultural differences between Hong Kong and the Chinese mainland that have led to a escalation in tensions, currently cumulating in the umbrella revolution in 2014.
First, the South China Sea constitutes the eastern approach to the Strait of Malacca, one of the “world's four most important strategic maritime passages,” and therefore contains the vital SLOCs between the Indian and Pacific Oceans.3 Figure 1. provides a visual representation of the SLOCs running through the South China Sea. “About 25% of the global shipping fleet transits through the region each year, underlining the importance of the South China Sea as an extension of the Malacca chokepoint.”4 That 25% traveling these SLOCs includes over half of the world’s shipping for oil and gas every year.5 Considering the volume of traffic passing through the South China Sea, a disruption of traffic along these SLOCs caused by a claims dispute or even armed conflict will rapidly generate negative global effects. Short of military action, challenges such as natural disasters6 or piracy require an international unified action (or at least, de-conflicted action) from multiple if not all South China Sea claimant nations.
WITH the development of China’s economic, merchandise trade has formed a competitive advantage in many industries. However, the competitiveness of China’s service trade has a weak foundation and is relatively less than that of the United States and other developed countries due to a late start. Thus, the developing pace of service trade is not the same with that of China’s national economic development in recent decades. According to the data released by the world trade organization website, the China’s service trade competitiveness index has been negative and its share has been quite small. Merchandise trade would finally be restricted if this phenomenon keeps on (Francois,2010). Therefore, it is urgent that efforts should be made to the development of China’s service trade and to improve its competitive level, which is driven by the good momentum of development of original merchandise trade.
According to Waters (2010) water transport has not been used to it’s full potential therefore there has been a decline in sea transport, this is due to the lack of proper terminals. But according to Harrison & Fichtinger (2013) containerised ocean transport has become the lifeline of nearly all global supply chain, because of the increased amount of global processes, outsourcing and offshoring. Mason & Nair (2013) states that today, there are more than 80% of world trade by sea, such as raw materials and manufacturing outputs are carried inter-regionally around the globe.