Red Sea Disruption: Pressure On Chinese Businesses Increases As Shipping Cost Surges
The Red Sea attacks have been impacting the economies of many countries and there have been reports of the huge losses for companies in Europe due to the maritime disruption. Some of the companies had already planned to suspend their production due to the disruption in the supply chain. However, reports now come to fore that the Chinese businesses are also swaying in the effects of the International maritime disruption, with businessman from China alleges that the Red Sea attacks are threatening the survival of Chinese companies.
With the delay in shipping and the rise of the cost, the Chinese exporters have become under pressure. The Chinese exporter Han Changming, who exports Chinese-made cars to Africa and imports off-road vehicles from Europe today said that the Red Sea disruption is threatening the survival of his trading firm in the eastern province of Fujian, Routers reported.
The cost of shipping had surged to roughly 7,000 US dollars from 3,000 in December since the beginning of the Houthis attacks, the Chinese businessman says. Noting the higher shipping insurance premiums as another negative effect on his company which was founded in 2016, Han said that the disruptions have wiped out our already thin profits.
In his address at the World Economic Forum in Davos on Tuesday, Li Qiang, Chinese Politician and the Premier of the People”s Republic of China noted the need to keep the global supply chains stable and smooth. But, Li Qiang did not refer to the Red Sea issue specifically.
However, according to a report, a senior Houthis official Mohammed al-Bukhaiti has said that the Russian and Chinese vessels will have safe passage through the Red Sea, promising that the group will not attack their ships.
In an interview by Russian news outlet Izvestia on Friday, Houthi official Mohammed al-Bukhaiti said that as for all other countries, including Russia and China, their shipping in the region is not threatened and the group is, moreover ready to ensure the safe passage of their ships in the Red Sea.
Houthis have been targeting commercial ships that they say liked to Israel, in its solidarity with the ailing Palestinians under the Israeli offensive in Gaza. The Israeli aggression in Gaza has killed more than 2,4000 since the beginning of last October.
