news Geopolitical risk Hellenic Shipping News
Amid global conflict-disruption cycle, China’s reliability has enduring economic appeal in World Economy News 06/05/2026 Disruption has become the name of the game for the world economy in the 2020s. The COVID pandemic, Russia-Ukraine conflict, Gaza war, Trump tariffs and now the Middle East conflict, have highlighted the flipside of globalization, which is that physical separation from a crisis is no longer a buffer from its economic fallout. Whether it be lockdowns, supply shocks, financial contagion, mobility bottlenecks, or erratic foreign policies, the butterfly effect is likely to be felt in multiple forms far from the epicenter. Interestingly, the man who rewrote and popularized globalization for the 21st century, The World Is Flat author Thomas Friedman, had drawn a direct correlation between conflict and supply chains. The Dell theory of conflict prevention precludes conflict between countries that are part of the same global supply chain. Whether or not the theory has held true to any degree is debatable (because economic theorists routinely underestimate politics) but the underlying logic is undeniable: Conflicts between two countries invariably impacts supply chains they’re involved in or in the vicinity of. Which is why the US-Iran conflict and Strait of Hormuz disruption have caused several unintended consequences. Without naming any specific locations, areas beyond the periphery of the conflict have witnessed small business closures, sporting events played in front of empty stadiums, higher food prices due to fertilizer price rise, cancellations of flights and financial SOSs from airlines, etc. Even in the US, where the Middle East conflict is at least 7.5 time zones away, the price of fuel has gone up significantly as a result, touching the lives of all Americans. And yet, there are places with large economies where there appears to be minimal-to-zero on-ground impact of this fallout. The last week in China witnessed the 19th edition of the Beijing International Automotive Exhibition (Beijing Auto Show) being held in the cavernous Capital International Exhibition and Convention Center. Automakers and automotive tech companies from around the world filled up 380,000 square meters of top-notch expo space in multiple airport terminal-sized exhibition halls, drawing large crowds of visitors. Each exhibit had something to offer — from sleek new electric vehicles with multiple infotainment screens and futuristic features (including several with autonomous and eVTOL capabilities), to the “surround sound,” including ramp-walks, DJs, mascots, robot-dances, collectible giveaways and much more. This author distinctly recalls noting that it resembled equal parts expo and equal parts carnival, no doubt thanks to the Labor Day holiday that’s got Chinese out and about across the country enjoying the best the Spring-time has to offer. Also last week, China implemented a frankly extraordinary trade policy move. 53 African countries which have diplomatic relations with China will now get tariff-free access to the vast Chinese market. A sea-route between Tianjin Port and South Africa has also opened, enabling easier logistical access. Officials from African nations have spoken to CGTN about how this move gives their producers and exporters an enormous opportunity. The giant Beijing Auto Show and the tariff-free policy for Africa are just two examples that demonstrate that at a time of crisis, disruption and upheaval, where entire geographi
Amid global conflict-disruption cycle, China’s reliability has enduring economic appeal
Hellenic Shipping News
Read full article at Hellenic Shipping News →
Opens Hellenic Shipping News in a new tab