As of 2022, Pakistan’s debt to China has reached $23 billion, primarily due to extensive borrowing linked to the China-Pakistan Economic Corridor (CPEC). This financial burden exacerbates Pakistan’s economic crisis, raising concerns about potential “debt-trap diplomacy” practices by China. While some analysts dismiss these claims, issues regarding Chinese loans persist, such as lack of transparency and concerns about social and environmental impacts. China’s investments in port infrastructure, which may serve military purposes, also contribute to these worries, particularly with an estimated 55 out of 70 commercial port projects in the Global South possessing potential naval uses.
China’s establishment of a military base in Djibouti and allegations of similar agreements in Cambodia and the UAE underscore the potential for strategic military expansions under the guise of commercial endeavors. The risks extend to spying and intelligence gathering capabilities, evidenced by findings of Chinese-made communication technology in cranes at U.S. ports, which could compromise sensitive information concerning military logistics.
In contrast to China, U.S. port infrastructure is outdated and underfunded, with only 208 commercial ports compared to China’s extensive network of over 2,000. The American Society of Civil Engineers rated U.S. port infrastructure as mediocre, with 91% of ports receiving fair to poor ratings. The U.S. lacks ownership of any overseas commercial ports, making it difficult to manage competitive maritime interests internationally. Recent initiatives, such as the Biden-Harris Action Plan and investments from the U.S. International Development Finance Corporation, mark attempts to improve U.S. port infrastructure, but a more coherent strategy is required to enhance competitive standing against China’s aggressive port investments.
Multilateral development banks (MDBs) are crucial for U.S. engagement in global port infrastructure, yet the current Western financial frameworks often deter developing countries due to stringent application processes compared to China’s more appealing offerings. Recommendations for the U.S. include developing a robust national security strategy focused on international port infrastructure, streamlining interagency efforts, and improving the competitiveness of MDB loans. This strategic overhaul would not only enhance U.S. capabilities in global port development but also foster collaborative efforts with allies to counter China’s growing influence.
