ZPMC(SH:600320) Guan Cha Zhe Wang·2025-12-29 06:17Core Viewpoint - The journey of the "Zhenhua 29" cargo ship symbolizes the peak of globalization, which may be coming to an end due to rising tensions in U.S.-China trade relations, particularly concerning Chinese-manufactured port cranes [1][5]. Group 1: Shipping Journey and Logistics - The "Zhenhua 29" completed one of the longest shipping routes globally, taking three and a half months to travel nearly 20,000 nautical miles from Shanghai to various ports in the U.S. and Jamaica [1]. - The ship's route included a detour around the Cape of Good Hope due to severe weather conditions, highlighting the challenges of transporting large cranes across oceans [4]. - The ship is owned by Shanghai Zhenhua Heavy Industries (ZPMC), the world's largest manufacturer of port cranes, which produces hundreds of cranes annually at its facility in Changxing Island [4][7]. Group 2: U.S.-China Trade Relations - The U.S. government views Chinese port cranes as a national security threat, despite a lack of evidence to support these claims, as confirmed by inspections that found no security vulnerabilities [1][6]. - The Biden administration has proposed tariffs of 100% on Chinese-manufactured port cranes, citing concerns over technology transfer and intellectual property [6][7]. - U.S. port operators have expressed that high tariffs could disrupt supply chains and increase shipping costs, as Chinese cranes are favored for their availability and lower prices [7]. Group 3: Industry Impact and Future Outlook - China currently accounts for over 70% of global port crane production, with approximately 80% of U.S. port cranes sourced from China [5]. - The U.S. has lost domestic crane manufacturing capacity over the past few decades, and establishing sufficient production capabilities in the U.S. could take around ten years [7]. - The Chinese government has defended its crane manufacturing industry as a result of technological innovation and market competition, arguing that U.S. claims lack factual basis and economic rationale [7].