China expands smart-port technology push as overseas security concerns grow

China is expanding its push into automated ports, driverless trucks, remote-controlled cranes and AI systems as it seeks an advantage in maritime trade. The effort is drawing attention ahead of the Asia-Pacific Economic Cooperation summit in Shenzhen on November 18 and 19.

China's transport ministry says the country has 60 automated terminals and aims to increase that number to 90 by 2030. The New Qianwan Container Terminal in Qingdao says each of its cranes can handle 61 containers an hour, more than twice the rate at conventional docks. Those performance figures are the terminal's claims.

Chinese companies are also selling port technology overseas. Driverless trucks made by Westwell operate at Felixstowe in Britain, while China Merchants Port has introduced its terminal operating software at facilities in Sri Lanka, Greece, Italy and Turkey. Such software coordinates work across a terminal, including cargo handling, vehicles and customs information.

Western officials and analysts worry that dependence on Chinese systems could create security and commercial risks. Their concerns include surveillance, economic pressure and disruption of trade networks during a crisis. These are assessments of potential vulnerabilities, not confirmation that a particular attack has occurred.

The expansion is not without setbacks. A China-backed shipping-data platform has struggled after opposition from Washington, and foreign companies still dominate much of the terminal-software market. The competition concerns who supplies and controls the systems behind an industry that moves more than 80% of internationally traded goods by volume.