In a bid to reap the benefits of the China’s Maritime Silk Road and to build bigger connections in Southeast Asia, Teo Siong Seng, Managing Director of Pacific International Lines Group, is planning to set up a joint-venture with China Cosco Shipping Corporation, according to Bloomberg.
Teo Siong, who is also Chairman of the Singapore Business Foundation, said: “Chinese companies alone may not have enough experience to carry out their investments in other countries.
“To cooperate with companies like us would also make their businesses smoother. They have to learn the way we deal with local people and the way we do business.”
The move is an example of how Chinese companies can take take advantage of new business opportunities in regions such as Singapore and also to allow them to navigate through tensions relating to the South China Sea.
PTI previously reported that The Philippines recently won a court ruling in The Hague, which will give it rights to key reefs and disputed waters in the South China Sea.
There is currently a dispute between ASEAN countries, which includes The Philippines, Singapore and Indonesia as to who owns the South China Sea. However, China currently owns the majority of it.
With regards to the One Belt, One Road plan, DP World recently announced that there is currently a US$5 trillion infrastructure gap.
It has called on governments from One Belt, One Road countries to address this gap in order to ensure the long-term success of the project.