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China's Taiwan war games threaten more global supply chain disruption
The drills -- China's largest-ever around Taiwan -- are a major show of strength after US House Speaker Nancy Pelosi infuriated Beijing by visiting the island.
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Chinese military helicopters fly past Pingtan island, one of mainland China's closest point from Taiwan, in Fujian province on August 4, 2022, ahead of massive military drills off Taiwan following US House Speaker Nancy Pelosi's visit to the self-ruled island. (AFP/Hector Retamal)
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hinese military exercises around Taiwan are set to disrupt one of the world's busiest shipping zones, analysts told AFP, highlighting the island's critical position in already stretched global supply chains.
The drills -- China's largest-ever around Taiwan -- are a major show of strength after US House Speaker Nancy Pelosi infuriated Beijing by visiting the island.
The manoeuvres kicked off Thursday and will take place along some of the busiest shipping routes on the planet, used to supply vital semiconductors and electronic equipment produced in East Asian factory hubs to global markets.
The routes are also a key artery for natural gas.
Nearly half the world's container ships passed through the narrow Taiwan Strait -- which separates the island from the Chinese mainland -- in the first seven months of this year, according to data compiled by Bloomberg.
"Given that much of the world's container fleet passes through that waterway, there will inevitably be disruptions to global supply chains due to the rerouting," said James Char, an associate research fellow at Singapore's S. Rajaratnam School of International Studies.
'Incredibly busy waterway'
