shockedcanadian
Diamond Member
- Aug 6, 2012
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They are suggesting this is going to continue until the 8th. Is this effectively a blockage? If it is defined as one, how will the world react?
BEIJING -- Taiwan canceled airline flights Thursday as China fired missiles near the self-ruled island in retaliation for a top American lawmaker’s visit, adding to the risk of disruptions in the flow of Taiwanese-made processor chips needed by global telecom and auto industries.
China ordered ships and planes to avoid military drills that encircled Taiwan, which the mainland's ruling Communist Party claims as part of its territory. The Hong Kong newspaper The South China Morning Post called the drills an “effective Taiwan blockade.”
Beijing announced “live-fire exercises” after Speaker Nancy Pelosi of the House of Representatives arrived Tuesday for a one-day visit, defying warnings from Beijing. It earlier banned imports of hundreds of Taiwanese food items including fish, fruit and cookies.
...............................................................
There was no immediate indication of the possible impact on shipping, which has the potential to jolt the global economy.
Taiwan produces more than half the processor chips used in smartphones, autos, tablet computers and other electronics. Chip sales to Chinese factories that assemble most of the world's consumer electronics rose 24.4% last year to $104.3 billion.
Any significant disruption would “create shockwaves to global industries,” said Rajiv Biswas of S&P Global Market Intelligence in an email.
That could push up already high inflation in the United States and Europe the same way prices spiked after the coronavirus disrupted shipping in 2020-21, said Garcia Herrero.
“If ports can't operate normally, we can see the consequences,” she said.
Taiwan cancels flights as China holds military drills
Taiwan has canceled airline flights as China fired missiles near the island in retaliation for a top American lawmaker’s visit, but the possible impact on shipments of processor chips and other goods needed by global industries was unclear
abcnews.go.com
BEIJING -- Taiwan canceled airline flights Thursday as China fired missiles near the self-ruled island in retaliation for a top American lawmaker’s visit, adding to the risk of disruptions in the flow of Taiwanese-made processor chips needed by global telecom and auto industries.
China ordered ships and planes to avoid military drills that encircled Taiwan, which the mainland's ruling Communist Party claims as part of its territory. The Hong Kong newspaper The South China Morning Post called the drills an “effective Taiwan blockade.”
Beijing announced “live-fire exercises” after Speaker Nancy Pelosi of the House of Representatives arrived Tuesday for a one-day visit, defying warnings from Beijing. It earlier banned imports of hundreds of Taiwanese food items including fish, fruit and cookies.
...............................................................
There was no immediate indication of the possible impact on shipping, which has the potential to jolt the global economy.
Taiwan produces more than half the processor chips used in smartphones, autos, tablet computers and other electronics. Chip sales to Chinese factories that assemble most of the world's consumer electronics rose 24.4% last year to $104.3 billion.
Any significant disruption would “create shockwaves to global industries,” said Rajiv Biswas of S&P Global Market Intelligence in an email.
That could push up already high inflation in the United States and Europe the same way prices spiked after the coronavirus disrupted shipping in 2020-21, said Garcia Herrero.
“If ports can't operate normally, we can see the consequences,” she said.