Military exercises carried out by China around Taiwan on Thursday, at the level of busy trade routes, risk disrupting supply chains already damaged by the pandemic and the war in Ukraine. These exercises, the most important in its history around the island, are a response to the visit, Tuesday and Wednesday, of the leader of the United States deputies, Nancy Pelosi, to Taipei.
Intended to simulate a “blockade” of Taiwan, they include “live ammunition and long-range artillery fire”, missiles that will fly over the island for the first time, according to various state media. As a security measure, the China Maritime Safety Administration has “prohibited” ships from entering the affected areas.
These maneuvers occur at the level of trade routes among the busiest on the planet, and of crucial importance: they connect East Asian semiconductor and electronic equipment factories with the world and are also used to transport natural gas.
In the first seven months of the year, almost half of the world’s container ships passed through the Taiwan Strait, according to data compiled by Bloomberg. “Since a large part of the world’s container fleet passes through this waterway, diversion (caused by maneuvering) will inevitably lead to disruptions in global supply chains,” says James Char, a research associate in the School of International Studies. International S. Rajaratnam. in Singapore.
Canceled flights
However, supply chains have already been severely affected by the pandemic and the war in Ukraine.
Same thing in the air: In the past two days, more than 400 flights have been canceled at major airports in Fujian, the closest Chinese province to Taiwan. Taiwanese authorities have warned that the drills will disrupt 18 international air routes passing through the area. On the Taiwan Stock Exchange, the Taiex index dedicated to air and maritime transport companies fell 1.05% on Wednesday, having lost 4.6% of its value since the beginning of the week.
But several shipping companies said they would wait to see the impact of the drills before changing their routes. Because the current typhoon season complicates the passage of ships on the east side of Taiwan, through the Philippine Sea. Others do not foresee any change of plans. “We do not anticipate any impact during (this) period and we have no plans to divert our ships,” said Bonnie Huang, a China spokeswoman for Maersk, one of the world’s largest shipping companies.
Source: BFM TV
