While Iran and the US are negotiating, China blocks another important sea route
The consequences will be felt worldwide.

Google.maps
While Iran and the US are effectively blocking the Strait of Hormuz and simultaneously discussing a possible peace agreement, a new maritime crisis is developing thousands of kilometers away: China is apparently blocking access to the disputed and strategically important Scarborough Shoal in the South China Sea, reports Bild.
Satellite images showed that China is using ships and a floating barrier to block access to the reef. Scarborough is a traditional fishing ground, located 220 km west of the Philippine island of Luzon. Both countries claim this territory, as it is located in an important fishing and trade zone, but China has effectively controlled it since 2012.
“While the world breathlessly watches the Strait of Hormuz and its double blockade by Iran and the US, China, approximately 3700 nautical miles away, in the South China Sea, is also beginning to establish a maritime blockade,” warned geopolitical expert Clemens Fischer in Bild.

China's maneuver has a "completely different dimension" than the current blockade of the Strait of Hormuz, explains Fischer:
“About a third of global maritime cargo traffic, meaning goods worth about 3.3 trillion US dollars, passes through the South China Sea annually. Seven coastal states are vying for exclusive rights in nine different zones; China is involved in almost every conflict and now appears to be asserting its claim over Scarborough Shoal.”
The consequences will be felt worldwide:
“This uncertainty alone can lead to an increase in insurance premiums for ships and cargo, and thus to increased transportation costs, which will be reflected in final prices for consumers. This means that many goods may become more expensive.”
Comments