Chinese military exercises threaten global supply chain

Published on : 06/08/2022 – 19:10

Taiwan on Saturday (August 6th) accused the Chinese army of simulating an attack on the island, with China continuing its retaliation after the visit to Taipei by Nancy Pelosi, the Democratic speaker of the House of Representatives. The largest military maneuvers around the island of Taiwan are blocking busy navigable trade routes and threatening global supply chains.

Military exercises take place on some of the most important trade routes on the planet. Above all, they make it possible to transport semiconductors manufactured in factories in East Asia, of which Taiwan is the largest producer, all over the world.

According to Bloomberg, during the first 7 months of the year, nearly half of the container ships in the world fleet passed through the Taiwan Strait.

As a security measure, China’s Maritime Security Administration has ” prohibited » vessels to enter the areas concerned by the exercises. Their eastern bypass of the island would cause delays, risking disruption to global supply chains.

Read also Chinese naval and air exercises in the Taiwan Strait

A situation that global maritime transport would do well following the logistical problems caused by the Covid-19 pandemic and the war in Ukraine.

Everything now depends on what Beijing intends to do in the future. If the military maneuvers end this Sunday August 7 as announced by the Chinese authorities, the impact on maritime transport will be minimal. The option of a commercial blockade of the island is ruled out by analysts, as it would hurt the Chinese economy just as much.

A map of Chinese military maneuvers around Taiwan. © FMM Graphic Studio

Read also : Taiwan accuses China of simulating an attack on the island

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.