NEW DELHI — Escalating conflict in the Middle East is beginning to weigh on China’s export sector, with rising shipping costs and security risks disrupting trade flows and causing goods to accumulate in warehouses, according to media reports.
A report by CBC News, citing conditions in the eastern Chinese city of Yiwu, highlights the growing strain on exporters. Often referred to as the “world’s supermarket,” Yiwu is a major hub for low-cost consumer goods and electronics supplied to global retailers, including U.S. companies such as Amazon and Walmart, as well as markets across the Middle East.
According to the report, a sharp increase in shipping costs—combined with heightened risks to commercial vessels—has led many importers to delay or cancel shipments. Freight costs have surged roughly fivefold, rising from about $1,200 per container to as much as $6,000, a local businessman told CBC.
In addition to higher costs, safety concerns have become a significant deterrent. Ongoing attacks on commercial shipping in the region have made transportation routes increasingly risky. A recent strike on an oil tanker in the Persian Gulf has further underscored those concerns.
The situation in Yiwu offers a snapshot of broader disruptions to global supply chains, as tensions linked to the Iran conflict and constraints around the Strait of Hormuz affect key shipping lanes.
Local traders cited in the report said the Middle East accounts for roughly 30 percent of Yiwu’s exports, making the region a critical market now facing significant disruption.
Beyond trade, China is also experiencing pressure on the energy front. As one of the largest buyers of Iranian crude oil, supply uncertainties are adding to economic concerns.
Liquefied natural gas imports have also been affected. Qatar, a major supplier of LNG to China, has reportedly curtailed some operations following airstrikes on gas facilities, further tightening energy supplies.
The combined impact of trade bottlenecks and energy disruptions underscores the widening economic fallout from the ongoing conflict, with ripple effects extending well beyond the region. (Source: IANS)
