World news breaking now – Any escalation of the U.S.-China conflict over Taiwan could threaten global supply chains, Bloomberg expects. The agency called any action on the island “a blow to global shipping.

The Strait of Taiwan is the main route of ships going from China, Japan, South Korea and Taiwan to the West – through it the goods produced in Asian factories are delivered to markets in Europe, the United States and other countries. According to the agency, in 2022, 88 percent of the world’s largest merchant ships and 48 percent of the 5,400 container ships passed through the strait.

An alternative trade route could be a route through the Philippine Sea, bypassing the coast of Taiwan to the east. However, other options entail greater risks because of natural phenomena typical of the South China Sea – the region is often hit by typhoons, an average of 20 per year.

Supply chain disruptions around the world could seriously affect global trade relations. In 2022, the global logistics system was hit hard by the coronavirus pandemic and lockdown in China. Then, sanctions, which were a response to Russia’s actions in Ukraine, influenced the supply restriction.

Taiwan has long been a point of contention between the U.S. and China. On August 2, tensions between the states escalated over the announcement of a visit to the island by U.S. House Speaker Nancy Pelosi. In response to Washington’s action, Beijing began military exercises with live firing in the Taiwan Strait. Taiwan, in turn, raised its military readiness because of the potential threat.