Cosco

The Chinese state-owned company Cosco, short for China COSCO Shipping Corporation Ltd. is active worldwide. With a stake in the Port of Hamburg, Cosco also has influence in Germany. All Cosco news from the China.Table editorial team. China-Cosco: Who owns Cosco Shipping? Cosco is a Chinese state-owned enterprise. As a centrally managed company, it is wholly owned by the Chinese state. As a state-owned enterprise, the shipping company has an internal Central Committee of the Communist Party of China, which discusses business decisions for Cosco. The company is headquartered in Shanghai, China. The shipping company is considered one of the largest container carriers and terminal operators of ports. Cosco was founded in 2016 from a merger of the Chinese state-owned companies China Ocean Shipping (Group) Company and China Shipping Group. However, its origins date back to the '50s, when China sought to establish cooperation in shipping and trade with other socialist states. What does Cosco Shipping do? Cosco operates a total fleet of over 1,400 ships and invests in terminals worldwide (not just in China) – the majority of which are container terminals. The state-owned company's vision is to globalize the Chinese economy and become a leading global logistics company. It owns shares in ports in the following countries in Europe: Cosco also has strategic relevance. It is classified as a particularly important state-owned enterprise in the People's Republic of China. As a global terminal operator, Cosco plays an important role in the expansion of the so-called New Silk Road. The New Silk Road is a project of the People's Republic of China to strengthen global trade relations and expand its geopolitical influence. Hamburg and Duisburg: Is Cosco coming to Germany? The Chinese company Cosco is already active in Germany. Until June 2022, the shipping company held 30% of a project to build a new port terminal at the Port of Duisburg. However, the company withdrew from the project in June 2022. Duisburg is considered one of the end points of the New Silk Road. In September 2021, Cosco also signed an investment in the Port of Hamburg's Tollerort terminal. The Chinese company and Hamburger Hafen und Logistik AG (HHLA) had been negotiating since June 2021. The Port of Hamburg is considered one of the most important ports for goods trade between China and Europe. Cosco had originally planned to acquire a 35% stake. Cosco and the Port of Hamburg: will the Cosco deal happen? In August 2022, however, it became known that the Federal Ministry of Economics under Robert Habeck was critical of the pending deal between the Chinese company Cosco and the Port of Hamburg. The background to this is the fear of excessive dependence on authoritarian states, which recently became clear during Russia's war in Ukraine. While German Chancellor Olaf Scholz spoke out in favor of a stake, the Greens and FDP were against Cosco's entry, and in October 2022 a compromise was reached in the deal for Cosco's entry into the Port of Hamburg. Cosco was allowed to take over 24.9% of the shares, but the Federal Ministry of Economics prohibited a stake of more than 25%. The decision was met with criticism, including from China scholars who fear that the PRC will exert too much influence over the state-owned company Cosco in Germany and the Port of Hamburg. Cosco and the port of Piraeus: is Greece becoming dependent on China? Another example of Cosco's approach and China's efforts is the acquisition of the port of Piraeus in Greece. In 2009, in the wake of the financial crisis, Cosco acquired 51% of the container terminal of the port of Piraeus. The company borrowed money worth over EUR 215 million from the China Development Bank, a state-owned bank, for the purchase of shares in the port of Piraeus. Here, too, the great strategic importance of ports for China becomes clear. In 2016, Cosco acquired further shares in the port of Piraeus. Since 2021, the company has held a 67% stake, which gives the shipping company decision-making power over the port. The port of Piraeus has increased its throughput in recent years and is considered one of the ten largest container transshipment points in Europe.Cosco's stake in the port of Piraeus was described by Chinese President Xi Jinping as the "head of the dragon" of the New Silk Road. Due to its location with connections to the continents of Europe, Africa and Asia, the port of Piraeus is considered an important transshipment point for goods. In addition, over 80% of China's trade with Europe takes place via sea routes, but Cosco's involvement in the port of Piraeus has also attracted criticism. The Chinese state-owned company is the sole owner of the majority of the port of Piraeus, unlike other private European port investments. Experts in Greece have also described the purchase as a mistake, as Greece is making itself dependent on both Cosco and the People's Republic of China. Cosco and Co: What economic and strategic importance do ports have for China? On the one hand, economic port investments by Chinese companies such as Cosco and other New Silk Road projects mean that they generate jobs for many Chinese companies. In addition, China benefits from favorable conditions for ports that are owned in part by Cosco, for example. On the other hand, according to experts, it is clear that the control of ports has further strategic implications for China. For China, shares in ports mean greater control of supply chains and a diversification of trade routes. The PRC is also promised potential influence through the participation of state-owned companies such as Cosco in ports. China justifies its increasing international presence by maintaining security for Chinese traders overseas. China Cosco News in Germany and Europe The Chinese state-owned company Cosco is increasingly expanding its influence in Europe and worldwide. The China.Table editorial team reports on the impact of the shipping company's efforts in Germany and around the world, how the deal with the Port of Hamburg and Cosco is progressing and more.