TAIPEI (Taiwan News) — Ship orders from Taiwan’s Evergreen Marine Corp. help fund China’s naval build-up, Washington-based think tank Center for Strategic and International Studies (CSIS) says.
In a report published on Thursday (April 7), CSIS said the Taiwanese shipping company’s contracts with China State Shipbuilding Corp (CSSC) have lowered the costs for bolstering China’s naval assets. CSSC is a major producer of warships for the People’s Liberation Army Navy and is reportedly building its third aircraft carrier, the think tank said.
Evergreen has purchased at least 44 vessels from China since 2018, and all but two were ordered from shipyards that produce Chinese naval ships, according to the report. Buying so many merchant ships from China is a real security concern for Taiwan, CSIS warned.
The fact that Taiwan’s foremost shipping company is pouring money into the coffers of shipyards assembling warships for the Chinese navy “should raise more than a few eyebrows in Taipei,” the think tank said.
“Facilitating better resource-sharing between military and civilian ventures is a critical element of China’s military-civilian-fusion strategy,” CSIS said. Foreign capital can also help offset China’s military research and development costs, it added.
CSIS also mentioned that “Workers trained to construct commercial vessels may even be able to transfer some of their skills when working on PLAN warships.”
The think tank said other nations face the same challenge, pointing out the French shipping giant CMA CGM has placed at least 46 orders with Chinese shipyards since 2017, while Switzerland’s Mediterranean Shipping Company ordered three container ships from Dalian in March 2021 and six more in January of this year.
Japan’s Kawasaki Kisen Kaisha and Mitsui OSK Lines have ordered 13 liquified natural gas carriers from China since 2019, CSIS said. It added that 11 of these will be built at Hudong-Zhonghua, where China built its first three Type 075 landing helicopter docks.
To combat overreliance on Chinese shipyards, the think tank recommended Washington find ways to deter foreign companies from purchasing ships from China and point them toward South Korean and Japanese alternatives.
