Analysts say they started noticing the drop-off in shipping traffic toward the end of October, as China prepared to enact legislation governing data privacy.
Usually, shipping data companies are able to track ships worldwide because they are fitted with an Automatic Identification System, or AIS, transceiver.
This system allows ships to send information — such as position, speed, course and name — to stations that are based along coastlines using high-frequency radio. If a ship is out of range of those stations, the information can be exchanged via satellite.
But that’s not happening in the world’s second-largest economy, a critical player in global trade. In the past three weeks, the number of vessels sending signals from the country has plunged by nearly 90%, according to data from the global shipping data provider VesselsValue.
“We are currently seeing an industry wide reduction in terrestrial AIS signals in China,” said Charlotte Cook, head trade analyst at VesselsValue.
New data law could worsen supply chain chaos
Asked about the issue, China’s Ministry of Foreign Affairs declined to comment. The State Council Information Office, which acts as a press office for the country’s cabinet, did not immediately respond to a request for comment about why shipping providers were losing access to data.
The law doesn’t mention shipping data. But Chinese data providers might be withholding information as a precaution, according to Anastassis Touros, AIS network team leader at Marine Traffic, a major ship-tracking information provider.
“Whenever you have a new law, we have a time period where everyone needs to check out if things are okay, “ Touros said.
Other industry experts have more clues of the law’s influence. Cook said that colleagues in China told her that some AIS transponders were removed from stations based along Chinese coastlines at the start of the month, at the instruction of national security authorities. The only systems allowed to remain needed to be installed by “qualified parties.”
Not all of the data is gone: Satellites can still be used to capture signals from ships. But Touros said that when a ship is close to shore, the information collected in space is not as good as what can be gathered on the ground.
“We need terrestrial stations in order to have a better picture, a more high-quality picture,” he added.
Shipping firms rely on AIS data to predict vessel movement, track seasonal trends and improve port efficiency, according to Cook from VesselsValue. She said the lack of Chinese data “could significantly impact ocean supply chain visibility across China.” The country is one of the world’s major importers of coal and iron ore, as well as a huge exporter of containers.
“As we move into the Christmas period, it will have a really big impact on [supply chains] and this is the most important element right now,” said Georgios Hatzimanolis, media strategist for Marine Traffic. He expects the loss of “minute by minute” ship data from China to have “a great impact on the supply chain,” since companies may lose crucial information about ship docking, unloading and leaving times.
The global supply chain is already under “great stress,” he added. “It doesn’t need another factor to make it more difficult.”
China’s desire to retain absolute control over all data and information within its borders isn’t surprising, as President Xi Jinping continues to reassert the ruling Communist Party’s dominance in every aspect of the economy and society.
Some top officials in Beijing have recently tried to quell concerns among global investors that the country is isolating itself from the rest of the world as it prioritizes national security.
Chinese Vice President Wang Qishan, considered a trusted ally of Xi, told the Bloomberg New Economy Forum in Singapore that China would not “develop isolated from the world.” Speaking via video, he also called on countries to keep supply chains “stable and smooth.”
But China has embraced policies during the coronavirus pandemic that often appear to do otherwise.
China’s actions this year may come at a cost, though, if the country goes too far in its attempt to protect itself from perceived foreign interference.
“If China is serious about promoting transparency, reconnecting or remaining connected with the world … then they have absolutely no reasons to be creating regulations that are going to limit this data coming out,” said Marine Traffic’s Hatzimanolis, referring to the shipping data. “If we don’t have visibility of when ships arrived in China and when leaving … the whole supply chain becomes further fragmented.”
— CNN’s Beijing bureau contributed to this report.
For Latest Updates Follow us on Google News
**If you have any Query Related This Post then here is the Source Link**