The Red Sea became the epicenter of a burgeoning crisis on Jan. 9, as reported by the U.S. Department of Defense. The region witnessed its most significant escalation since November 2023, with Yemen’s Houthis threatening 50 merchant ships.
Houthis Spark Shipping Chaos
The crisis first unfolded in late November 2023 when Houthi militants targeted Israeli ships, purportedly in solidarity with Hamas. Their sphere of aggression soon widened to include vessels from approximately 40 countries.The conflict significantly hampers maritime traffic in the Red Sea region, including the vital Suez Canal, with reported traffic reductions of around 80 percent.
Impact on Global Trade and Maritime Navigation
Sun I-Tao, former deputy commander of Taiwan’s Zheng He naval ship, said on Pinnacle View that the Red Sea route is a crucial maritime link between Europe and Asia. With over 17,000 cargo ships transiting the Suez Canal annually, this route handles 12 percent of global trade and 30 percent of the global freight volume.A detour via South Africa’s Cape of Good Hope could add four days to each journey, potentially extending global freight timelines by up to four weeks and causing a surge in transportation costs.
These escalating costs, stemming from higher freight and insurance rates, will ultimately burden consumers. Continued instability in the region risks disrupting the global supply chain, with shipping capacity reduced by an estimated 20 percent due to rerouting.
International Response and Military Involvement
On Dec. 19, 2023, the United States formed a coalition of ten nations to escort commercial ships in the Red Sea. However, the initiative faced challenges due to varied concerns among participating countries, complicating its implementation.The Arabian Sea, under the jurisdiction of the U.S. Central Command, is crucial for overseeing military operations in the Middle East and Central Asia. The U.S. Fifth Fleet’s Central Naval Command extends from the Persian Gulf to the Indian Ocean near Kenya.
The United States deploys carrier strike groups, such as the formidable combination of Ford-class and Eisenhower-class carriers in the Middle East, to bolster its military presence in the strategic waters.
Alleged Secret Collusion Between Chinese Ships and Houthis
An online video from China has sparked controversy, showing Chinese merchant ships under the five-starred red national flag receiving an unusual courtesy in the Red Sea. As these ships pass, nearby Houthi militant vessels reportedly disengage, followed by the Chinese ships sounding their horns, ostensibly in gratitude.Mr. Sun, speaking on the Pinnacle View, highlighted that Houthis predominantly target ships associated with Israel and its Western allies, sparing Chinese vessels from their attacks.
Understanding the Houthis: Perspectives from ‘Pinnacle View’
Guo Jun, editor-in-chief of The Epoch Times Chinese edition and guest on Pinnacle View, described the Houthis as a Shia Islamic militant group under warlord control in Yemen. Originating as a youth faith movement post-9/11, they later evolved into a militant group with anti-American, anti-Western, and anti-Israeli ideologies. The group also maintains tense relations with the Sunni-dominated Gulf Cooperation Council countries.Red Sea Crisis: A Fragment of a Larger Middle Eastern Conflict
The host of Pinnacle View, Shi Shan, asserts that the Red Sea crisis is an extension of the ongoing Israel-Hamas conflict. The situation intertwines various Middle Eastern issues, including Israel-Arab conflicts, intra-Muslim discord, oil politics, and global freight dynamics.Mr. Shi further characterizes the Houthis as more formidable than Somali pirates, being an organized warlord faction controlling much of Yemen. He notes that Osama bin Laden, the founder of Al-Qaeda, was of Yemeni descent but a Sunni Muslim, underscoring the deep-rooted religious and geopolitical complexities of the Middle East, which defy quick resolution.
Strategic Importance of the Red Sea Route and Historical Context
This maritime route, stretching from the Strait of Malacca through the Red Sea via the Suez Canal, is the main artery connecting Asia, Europe, and America. It facilitates over 15 percent of global goods trade, predominantly transporting Asian products to European and American markets. A long-term blockade of this strategic waterway would necessitate a major realignment of global goods flow and supply chains.Reflecting on historical parallels, Mr. Li noted Britain’s naval dominance, underpinning its erstwhile global empire. Mr. Shi added that the Arabian Red Sea has always been a pivotal trade region, with disruptions like the eight-year closure of the Suez Canal during Israel-Arab conflicts severely impacting global trade.
Tracing the trajectory of human civilization, he highlighted three major waves of globalization. The first wave, initiated by the Mongols, opened up Eurasian trade routes. The second wave, led by Spanish and later British colonial expansions, capitalized on naval prowess. The current, third wave of globalization, led by Europe and the United States, is collaborative.
The ongoing Red Sea crisis, entwined with the Israel-Hamas conflict, poses a significant threat to this globalization process. As some analysts argue, the crisis may not see a resolution until the Israel-Hamas conflict is settled.
China’s Role and the Belt and Road Initiative
Ms. Guo also touched upon historical trade routes, comparing them with China’s contemporary “Belt and Road Initiative.” This initiative mirrors the ancient Maritime Silk Road, spanning from Southeast China to the Arabian Sea, and eventually linking to the Mediterranean.China, a major beneficiary of two decades of globalization, faces challenges to its export-driven economy and global supply chain, exacerbated by its zero-COVID-19 policy and now the Red Sea crisis. The situation necessitates significant adjustments in China’s economic structure and supply chain.
Mr. Shi concluded by noting a trend of manufacturing shifting from China to countries such as India, Vietnam, Indonesia, and Mexico. This shift, partly driven by geopolitical uncertainties, could also lead to a realignment of supply chains to Eastern European countries like Bulgaria and Romania, where labor costs are lower. Such changes may reverse current globalization trends and impact China’s Belt and Road Initiative.
