Chuyển tới nội dung
Trang chủ » Japan, South Korea trade shaken by the Nine-dash line.

Japan, South Korea trade shaken by the Nine-dash line.

Nine-dash line threatens Japan, South Korea trade

Nine-dash line threatens Japan, South Korea trade

China’s actions in the South China Sea may not have been overtly aggressive, but the potential for action creates a clear threat to the economies of Japan and South Korea. The two East Asian powerhouses are concerned about Chinese declarations that invoke the ability to restrict traffic, as that would affect their supply chains and energy imports. China claims sovereignty over almost all of the South China Sea through President Xi Jinping’s “nine-dash” declaration. While most of the world is focused on the resource and military implications of Chinese claims to the islands in the region, Japan and South Korea are primarily worried about moving their energy imports and manufacturing components without fear of restriction. China’s actions could raise the specter of unpredictability and significantly increase costs.

According to Kevin Klowden, chief global strategist of Milken Institute, the South China Sea is significant for regional and global energy supplies, estimated to carry 30% of the world’s crude oil. It supplies China and is a vital lifeline for the energy-dependent economies of Japan and South Korea. The sea is also a key passageway for Japan and South Korea’s global supply chains, carrying between 20% and 33% of global trade. For Japan, that figure reaches as much as 40%.

As global supply chains regionalize, the role of the South China Sea in the Japanese and South Korean economies will only grow. Linking the two countries to trading partners in Southeast Asia, India, and beyond is going to increase rather than decrease in importance. Knowing the answers to the questions of how much they are willing to concede to China in the region before it becomes untenable and whether they are prepared with alternatives that will allow them to compete economically is now crucial for Japan and South Korea.

FAQs:

What is the “nine-dash” declaration?

President Xi Jinping’s nine-dash declaration is a claim by China of sovereignty over almost all of the South China Sea.

Why are Japan and South Korea concerned about China’s actions in the South China Sea?

They are primarily worried about moving their energy imports and manufacturing components without fear of restriction, as China’s declarations invoke the ability to restrict traffic.

What percentage of the world’s crude oil does the South China Sea carry?

The South China Sea is estimated to carry 30% of the world’s crude oil.

What percentage of global trade does the South China Sea carry?

The sea carries between 20% and 33% of global trade, with Japan’s figure reaching as much as 40%.

Nine-dash line threatens Japan, South Korea trade
Nine-dash line threatens Japan, South Korea trade

Japan and South Korea trade threatened by the Nine-Dash Line

China’s rising global presence was a key issue on the agenda at the recent Group of Seven meetings. While most of the world focuses on the military and resource implications of Chinese claims to islands in the South China Sea, Japan and South Korea have strong economic interests to move their energy imports and manufacturing components through the region without restriction. The South China Sea carries an estimated 30% of global crude oil and is a key passageway for Japan and South Korea’s global supply chains. For South Korea and Japan, the stability of the South China Sea is a conduit for driving their economic growth. While the status quo holds for now, both countries must ask themselves how much they are willing to concede before it becomes untenable. As global supply chains regionalise, the role of the South China Sea will only grow and preparing for a more Chinese-dominant future is important.

Trả lời

Email của bạn sẽ không được hiển thị công khai. Các trường bắt buộc được đánh dấu *