COSCO Shipping and Noatum Port Holdings can look forward to more years of shipping deals together. The China-US dispute has complicated things, and while this is happening, both countries need to invest in other places. China has decided to invest in Spain, for the meantime, where it can impart its expertise developed by the Belt and Road Initiative policies.
China's COSCO Shipping has made a $228 million deal with Noatum Port Holdings that became sealed only last November. This has a lot of benefits for the country, according to The Meditelegraph; even while the deals are in place, Spain can learn a lot from China's advanced techniques, and China can add another country that agrees to share knowledge and know-how through their Belt and Road Initiative.
Noatum Ports CEO Sun Kai said that the deal will yield around 3.7 million TEUs, an amount up by 12 percent from last year. Kai also said that China is sharing the valuable experience so that Spain can help in effectively running trade; Noatum stands to receive needed procedural and management advances from COSCO Shipping.
This is an improvement after problems with the US has forced China to look for other areas to invest. The Trump administration has imposed its tariffs-the first, with the second set of tariffs arriving-which forced China to make its own actions. While it imposed tariffs of its own, Spain and other countries are becoming destinations for its own investments.
According to Bloomberg, China's investments in the US are in rapid decline by the Trump administration's own hand. China also reacted by cracking down on outbound investments in the US. This is more of a confrontational tone from China, though it was through the US' own efforts that China was forced to react like this.
High-profile investors in the US such as the Anbang Insurance Group Co., Dalian Wanda Group Co., and HNA Group Co. have started to sell off their assets. Investors that have stakes in US properties have started to sell off their holdings to the tune of $9.6 billion of collective assets.
If this trend continues, China stands to receive more by sharing their expertise with other countries in return for investments. The US stands to receive less by becoming less and less welcoming. If the dispute continues, it proves to be more costly to the US than it would be for China.
