Shipping must be prepared for long-term friction between the US and China.
It is an antagonism that is much broader than the policies of US President Donald Trump, according to Hing Chao, executive chairman of Wah Kwong Maritime Transport Holdings.
“We are facing a problem much bigger than the US or the Trump administration in the short term,” he said at a Marine Money conference in Oslo during Nor-Shipping.
Chao highlighted that China’s growing influence in many areas is a structural change in the world order.
“China is probably one of, if not the most important, shipping country in terms of newbuilding capacity, repair, maintenance, conversion, finance, leasing — also shipping players,” he said.
“China is also a major cargo destination. China will play a critical role in the energy transition. China will be a major centre for equipment and the production of green fuel.”
Chao said China cannot be ignored.
“That is one fact of reality. The other is that US-China tensions will not go away,” he said.
Hong Kong, where Wah Kwong is based, could play a critical role.
“Hong Kong is sitting in that hot seat, finding solutions for these two puzzles that don’t really fit together,” Chao told the audience.
“It is in all of our interests to try to find a solution. Because if we are talking about the energy transition, climate change, it is something that is concerning humanity over the next decades.”
Wah Kwong has diversified its business in the past decade.
It is active in shipowning, ship management and dry bulk operating
“Diversification was a fundamental way to hedge away the risk,” Chao explained.
“We have a very firm eye on future development trends. We are starting to invest in shipping AI. We have invested in a tech company that specialises in offshore wind. And we are looking heavily into the energy transition.”
The company’s approach to financing is also diversified.
“We have a balanced portfolio with banks in Asia, in China and Hong Kong, Europe, as well as leasing,” he said.
Despite the US’ anti-China shipping policies, Chao expects the company to consider Chinese leasing: “I see that to continue to grow.”
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