42 sats \ 2 replies \ @NRS 1 Jul \ on: China's Fiscal Revenue Decline Worsens econ
From my perspective, the main reason is the control over waterways. After the closure of the Red Sea by the Houthis in Yemen, commercial ships started using the old trade route of Bab-el-Mandeb Strait (before the establishment of the Suez Canal). As a result, there are now obstacles to exports, including high shipping costs and the time needed for these ships to reach their destinations.
yes, that may play a role. as you rightly mentioned, we are seeing how shipping rates are rising and could now exert inflationary pressure on the europeans again. control over the bottilmax of world trade is pure geopolitics, and the europeans are failing across the board. the Chinese, on the other hand, seem to be aware of this and