The world’s largest manufacturing region is experiencing significant military tensions, which could lead to another supply chain disruption soon.
Russia and China are straining the thread that sustains the fragile balance in Asia. Taiwan, South Korea, the Philippines, and India are countries that are being affected by the imperialist aims of the communist duo. It is a complex situation that is difficult to resolve peacefully. The United States is exposed, given that it is certainly tied up, being in an electoral period, with open fronts in Ukraine and especially in Israel.
Russia is in a low spot, with no funds and international sanctions forcing it to trade with “friendly countries.” The war in Ukraine and the opening of the Arctic route are its highest aspirations at present. Global warming is accelerating the melting of the Arctic and soon it will be possible to navigate all year round without the support of icebreakers. The war in Ukraine is more complicated, with the Western world supporting Zelensky. Now that South Korea is considering sending offensive weapons to Ukraine, indirectly via the United States, Russia has become enraged, forcing the heating of the DMZ (demilitarized zone between the two Koreas). In addition, it has recently been reported that North Korean soldiers have moved to Ukraine to fight for Russia. Finally, North Korea has destroyed the roads and railways that connect with the South. For those who understand, a few words are enough.
China is on the move. Given its internal crisis, with declining consumption, a collapsed property market, factory relocation to Southeast Asia and trade tensions with the United States and Europe, it is taking advantage of the situation to threaten Taiwan again, with increasingly worrying military exercises. On this occasion, the exercises that took place without warning, under the « Joint Sword-2024B » operation, involved 17 military vessels and 125 jet aircraft that surrounded the island, intimidating the Taiwanese population. A complete simulation of an invasion. The importance of Taiwan, in addition to semiconductors, lies in its geostrategic location. Merchant ships from China, Korea and Japan transit through the Taiwan Strait towards Europe, the United States and Singapore, so controlling this enclave gives a preponderant position, both in navigation and in the military aspect. Currently, almost half of container ships transit through the Taiwan Strait. It is worth remembering that both Evergreen and Yang Ming Lines are of Taiwanese origin.
The Philippines is also seeing China intrude into its waters, where it is building artificial islands for military purposes. The rivalry with India is another historical issue. In this case, Beijing has decided to invest in Myanmar in roads and railways that would connect its westernmost region with the Indian Ocean. The problem is that, for the moment, things are not going as they would have hoped and the regional rivalry is focused on the relocation of production centres.
