Shifting Trade Routes

Trump’s trade war is changing global oil flows (1) and setting up the global supply chain for disruption as companies consider moving out of China (2), or allocating investments to other parts of Southeast Asia (3). The currently established bastions of cheap labour are fighting to maintain their status (4) as companies look for ever more cost cutting strategies.

India ties itself closer to Russia with their purchase of the Russian air-defense system (5), joint projects in nuclear energy (6), and an agreement to use local currencies in trade (7).

China’s Belt and Road project is met with further delays as former backing nations realize it's not living up to its golden reputation, and Chinese behaviour (8) and lending practices are viewed with suspicion (9).

The US has been the de facto “protector” of the world’s trade routes for nearly hundred years (10), however the recent protectionist policies advanced by the Trump administration, and distancing from world relations (11) are leaving a void in the world (12) that China (13) (14) and Russia (15) are more than happy to fill.

President Xi has staked his (16), and the Communist Party’s, reputation on the success of this project, going so far as to enshrine it in their constitution (17). This will, unfortunately, lead to a development project that is more about political maneuverings than smart economics, and it might take some time before the world is ready to accept China as an equal (18).

 

  1. How Trump Is Rerouting the World’s Oil Tankers

  2. Companies Say They're Ready to Move Supply Chains From China

  3. Southeast Asia passes China in luring Japanese staff and money

  4. Bangladesh fights for future of its garment industry

  5. India Signs $5 Billion Deal To Purchase S-400 Air-Defense Systems From Russia

  6. Russia to construct 6 nuclear power plant units in India

  7. Dollars declined: India to pay for Russian air defense system in rubles

  8. ‘Behave like a normal nation!’ US tells China to obey laws, not cause ‘decades of pain’ globally

  9. A New Direction for China's Belt and Road

  10. Hedge Fund CIO: "Today, The Chinese Are Trapped... And The Box Keeps Shrinking

  11. Trump Reportedly Rejects Invite to India Amid Rift Over S-400 and Iran Oil

  12. World politics without Washington

  13. China's Silk Road to 'Fill the Gap of Former World Order' - Scholar

  14. The Chinese century is well under way

  15. Russia-Germany trade up by almost 25 percent – Kremlin

  16. China’s belt-and-road plans are to be welcomed—and worried about

  17. End of the Road?

  18. Pompeo Says US is Trying to Make China ‘Behave Like Normal Nation’


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