Some shipping companies are discreetly shifting operations out of Hong Kong and re-flagging vessels due to concerns over potential commandeering by Chinese authorities or U.S. sanctions in the event of a U.S.-China conflict.
According to Reuters, Beijing’s focus on national security and Washington’s increasing scrutiny of China’s commercial fleet have heightened industry fears. Behind these low-profile moves, six shipping executives said, lie concerns that their ships could be commandeered by Chinese authorities or hit with U.S. sanctions in a conflict between Beijing and Washington.
Hong Kong’s shipping registry, once a growing hub, has seen an 8% drop in registered oceangoing vessels over four years. Many ships have re-flagged to Singapore or the Marshall Islands, reversing a decades-long expansion.
Despite Hong Kong’s government offering incentives and downplaying concerns, some shipowners worry about emergency powers that could be used to seize vessels, Reuters notes.
