At a recent earnings conference in Hong Kong, COSCO Shipping Ports revealed it is encountering significant hurdles in its quest for global expansion, reports Reuters.
COSCO steers through choppy waters
Managing Director Wu Yu acknowledged that escalating tensions stemming from the U.S.–China trade conflict have turned pursuit of international investments into a formidable challenge.
Despite a downturn in exports to the United States, COSCO remains undeterred—redirecting its strategic focus toward emerging markets and key regional hubs across Southeast Asia, South America, Africa, and the Middle East. The company sees these regions as fertile ground for growth amid the evolving trade landscape.
Yet, the journey is far from smooth. A volatile geopolitical climate, tightened foreign investment regulations, and steep bidding wars for ports are all weighing on COSCO’s ambitions. These combined pressures are adding complexity and cost to its investment strategy.
Wu declined to confirm whether COSCO is involved in the ongoing negotiations surrounding CK Hutchison’s proposed $22.8 billion global ports sale. That acquisition includes 43 ports across 23 countries and has been under intense scrutiny, especially regarding Chinese influence over strategic locations such as those near the Panama Canal. COSCO’s potential participation remains unverified.
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Source: Reuters
