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China urges “all parties” to “ensure safety of navigation in the Red Sea” as analysts warn that attacks on commercial ships by Houthi rebels threaten the world’s second-largest economy I called out.
Beijing’s call for action to protect global trade routes appears to have come as the US reached out to China over whether it could put pressure on Iran, which supports the Yemen-based Houthis. It was inside. China has warm relations with Tehran.
However, China’s Ministry of Commerce has failed to offer any diplomatic or military support to resolve the waterway crisis.
“The Red Sea is an important international trade route,” a ministry spokesperson said Thursday, adding that China will “strengthen cooperation with relevant sectors, monitor developments closely, and provide timely support and assistance to foreign trading enterprises.” he added.
Over the past week, the United States and Britain have launched a series of attacks against the Houthis, who have vowed to continue operations in response to Israel’s invasion of Gaza.
Beijing, which has invested heavily in building closer ties in the region and supported the Palestinian cause in the Gaza conflict, has publicly remained neutral on the Houthi attacks.
But analysts said Iran’s support for the Houthis is a test for China’s relations in the region. China imports about half of its crude oil from Iran and other Middle Eastern countries, and much of its trade with the EU, its second largest trading partner, also goes through the Red Sea.
Beijing brokered improved relations between Iran and Saudi Arabia last year, a feat Chinese officials hailed as proof of the country’s diplomatic success.
Ying Gan, a Chinese Middle East expert, said that while the Houthi forces had not attacked Chinese merchant vessels, the disruption had increased shipping costs and caused “huge losses” to Chinese companies.
“The Red Sea route is very important for Chinese merchant shipping,” Yin said. “Packages from countries like China may be safe, but transportation costs are rising. . . . That’s very bad for China.”
The Shanghai Container Cargo Index rose last week to its highest level since September 2022, reflecting the rising cost of rerouting ships around Africa’s Cape of Good Hope.
State-run Cosco, China’s largest shipping company, has been forced to reroute cargo out of the region, raising costs for exporters, said Stephan Anrich, associate director and senior economist at Moody’s Analytics. , said there were delays. “I don’t think it’s an exaggeration to say that this is an unwelcome headwind, given that the domestic economy is not doing very well,” Mr. Anric said.
He added that European high-tech suppliers to Asia would also be disrupted, increasing risks to supply chains that are only now recovering after the coronavirus pandemic and Russia’s invasion of Ukraine.
Analysts cautioned that China probably would not intervene directly by military operations or putting pressure on Iran, preferring to make general statements about the importance of international sea routes.
“China has no intention of dealing directly with Iran on this issue because Iran supports the Houthis,” Yin said.
China’s People’s Liberation Army maintains a naval base in Djibouti at the mouth of the Red Sea, but analysts say it is a diplomatic move for Beijing to take part in military operations against the Houthis or in support of U.S. policy in the region. said that it would be contrary to Failure.
Joseph Gregory Mahoney, a professor of politics and international relations at East China Normal University, said, “China has made clear that, in principle, it will avoid military conflict as much as possible, except in matters directly related to sovereignty and UN peacekeeping operations.” “There is,” he said. University.
Additional reporting from Beijing by Wenjie Ding