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China calls for de-escalation of tensions, restoration of security in Red Sea

January 21, 2024 at 9:39 am

A screen grab captured from a video shows that cargo ship “Galaxy Leader”, co-owned by an Israeli company, being hijacked by Iran-backed Houthis from Yemen in the Red Sea on November 20, 2023 [Houthis Media Center – Anadolu Agency]

China has called for a de-escalation of tensions and the assurance of security in the Red Sea, amid the increasing impact that the crisis in the vital waterway is having on global markets and on Beijing’s own trade.

According to a spokesperson from China’s Ministry of Commerce on Thursday, “all relevant parties” should commit to “ensure the safety of navigation in the Red Sea”, reiterating that it is “an important international trade route”.

Following Israel’s launch of its bombardment, offensive, and invasion of the Gaza Strip, and the subsequent killing of around 25,000 Palestinians in the besieged territory, Yemen’s Houthi rebel group has attacked and seized ships – allegedly linked to Israel and its trade – passing through the Bab al-Mandeb strait to the Red Sea.

Those activities have forced vessels and companies around the world to use the alternative route to reach the Mediterranean, passing around the Cape of Good Hope and the entire African continent, driving up transport costs and significantly impacting global trade. As a result, the United States and Britain have recently launched a series of strikes against the Houthis, in an effort to counter the disruption to global shipping lanes.

READ: China is engaging with local actors to secure its trade and investments in the Middle East

Although China officially supports the Palestinian cause, has called for a ceasefire in Gaza, has been publicly neutral on the Houthi attacks, and the Houthis have not yet attacked Chinese merchant vessels, Beijing’s its own trade has been effected by the crisis.

The rising shipping costs have reportedly caused heavy losses for Chinese companies, and the security risks have forced China’s state-owned COSCO Shipping to suspend routes to Israel and reroute cargo away from the region. Much of China’s trade with the European Union also passes through the Red Sea, threatening Beijing’s commercial access to its second-biggest trading partner.

China has so far refrained from indicating any sign that it would take diplomatic or military action to defuse the Red Sea crisis, but the Chinese commerce ministry’s spokesperson stated that China would “strengthen co-ordination with relevant departments, closely follow the developments and provide timely support and assistance to foreign trade enterprises”.

READ: What does the Red Sea disruption mean for Europe’s economy?