BRICS & New World Order Thread

[Sinnavuuty]

No, it doesn't affect China. First, Houthis have pledged not to attack Chinese shipping. Second, and more importantly, this blockade affects all shippers, which means Chinese shipping's competitive position isn't damaged. What it means is Europeans pay more.

No, it affects Europeans who have to pay more. Which they seem happy to do to advance US interests, so let them pay more here. Paying more is their lot in life.

Of course it affects China.

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For Chinese businessman Han Changming, disruptions to Red Sea freight are threatening the survival of his trading company in the eastern province of Fujian.

"The disruptions have wiped out our already thin profits," said Han, adding that higher shipping-insurance premiums are also taking a toll on Fuzhou Han Changming International Trade Co Ltd, the company he founded in 2016.

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Chinese state-owned giants COSCO and OOCL have diverted dozens of ships from the Red Sea to a much longer route around the southern tip of Africa, as the CNN report indicates, compiling data from logistics company Kuehne + Nagel.

Shipping rates increased by more than 250%:

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All of this reduces Chinese competitiveness. Even if it affects the US/Europe more, China is still not going through this crisis unscathed. This is impossible. If it is a strategy of those who lose the most, China is not in a sustainable economic position to face this shock, resulting from economic problems that can be resolved in the long term by China, this crisis throws even more uncertainty regarding long-term economic stability of the Chinese economy.

 

[ZeEa5KPul]

Of course it affects China.

You'll have to do better than this:

adding that higher shipping-insurance premiums are also taking a toll on Fuzhou Han Changming International Trade Co Ltd, the company he founded in 2016

That sounds like a problem for Fuzhou Han Changming International Trade Co Ltd. Perhaps Fuzhou Han Changming International Trade Co Ltd should raise prices to account for increased costs rather than whine to Reuters reporters. Perhaps Fuzhou Han Changming International Trade Co Ltd's founder isn't all that bright and his company will be acquired by people who know what they're doing.

None of that affects the Chinese export machine, which will weather all of this just fine.

All of this reduces Chinese competitiveness.

That word does not mean what you think it means.

Even if it affects the US/Europe more, China is still not going through this crisis unscathed.

By definition, if my competitors suffer more, that improves my competitiveness.

China is not in a sustainable economic position to face this shock, resulting from economic problems that can be resolved in the long term by China, this crisis throws even more uncertainty regarding long-term economic stability of the Chinese economy.

Prove it.

 

[Sinnavuuty]

I have a question.

In other words, there is total denial here.

To keep the debate from getting off topic, I return to my original question: How could the Gulf countries unite with China when China itself plays such a modest and timid role in the Red Sea crisis led by the Houthis?

 

[Michaelsinodef]

In other words, there is total denial here.

To keep the debate from getting off topic, I return to my original question: How could the Gulf countries unite with China when China itself plays such a modest and timid role in the Red Sea crisis led by the Houthis?

I kinda agree.

Would rather say that the Gulf countries has an interest in working with China and BRICS, but calling it 'uniting' is a step too much.

 

[Serb]

Even if they suffer the same economic damage as the West from this, geopolitically it makes absolutely no sense for China to do anything to try and stop the Houthis.

Geopolitically speaking, it is the US that is affected negatively by this, whining all day, getting humiliated, losing ships, resources, etc, hence it is affecting China positively geopolitically.

China is not their vassals lol, it is their enemy. The more the US begs and whines about the Red Sea crisis, the more logical it is for China to just sit back, watch it and enjoy it.

And geopolitically, not only is this a positive development for China, but it could also turn quickly into a negative if China does what is said here. If China started to try and threaten Houthis or something to stop them, it would only backfire.

Imagine the reactions of the entire Middle East, the Global South, and the entire world. It would look like China is a US vassal, trying to stop Houthis from doing damage to the genocidal Israeli Zionist regime.

That would be a major shooting ourselves in the foot type move that I see very little chance of happening in a million years because the Chinese government isn't stupid.

 

[Sinnavuuty]

In fact. China could consider it a humiliation if it were part of the US initiative, preferring to limit itself to isolated actions rather than getting involved in an American action that will not be well received by the Global South.

 

[Topazchen]

I mean, don't they keep reminding us about "freeedum of navigation" and how their navy's job is to keep the sea lanes open ?

I'm surprised I'm not hearing about a free and open IPARESE - Indo-Pacific-Red Sea - or some other acronym that they will come up with.

 

[ZeEa5KPul]

A better question is why would Gulf countries unite with the US when the US isn't able to defend freedom of navigation and is indeed exacerbating the problem by enabling Israel. The best the US can offer is, "Are [the strikes] stopping the Houthis? No. Will they continue? Yes." There's something Einstein said about insanity that might apply here.

As for China, China never appointed itself the guardian of the world's seas. That's the US's "job", and it's doing a very poor job as usual.

 

[tphuang]

just letting you all know that this is getting off topic. if you want to keep discussing this, please take it to economics thread

 

[broadsword]

Just one more, the core part of the answer to @Sinnavuuty's question.

By definition, if my competitors suffer more, that improves my competitiveness.