Beijing’s military
drills around Taiwan threatens to impact the global supply chain, Associated
Free Press reported citing analysts. The Chinese government initiated military
drills around Taiwan after United States House Speaker Nancy Pelosi visited the
island earlier this week. The drills are China’s largest-ever around Taiwan and
are a major show of strength.

The drills will
take place on some of the busiest shipping routes on earth. These routes are
used to move semiconductors and electronic equipment produced in East Asia to
the rest of the world. They are also a key way for movement of natural gas.

Around 50% of the world’s
container ships pass through the narrow Taiwan Strait. The Taiwan Strait
separates the island from the Chinese mainland, according to Bloomberg data.

Also Read | EXPLAINER: Why is China staging drills around Taiwan?

Global supply
chains have hardly recovered from the impact of the COVID-19 pandemic. At this
time, even a slight impact on supply chains could have massive consequences,
say experts.

“Given that much
of the world’s container fleet passes through the waterway, there will inevitably
be disruptions to global supply chains due to rerouting,” said James Char,
associate research fellow at Singapore’s S Rajaratnam Institute of International
Studies, to AFP.

“China’s planned
live-fire exercises are occurring in an incredibly busy waterway,” said Nick
Marro of the Economist Intelligence Unit wrote in a note, adding, “The shutting
down of these transport routes – even temporarily – has consequences not only
for Taiwan, but also trade flows tied to Japan and South Korea.”

Also Read | After Taiwan, Pelosi in S. Korea to meet political leaders

Amid the live-fire
drills, Taiwan’s Maritime and Port Bureau has called on ships in the northern,
eastern and southern areas to avoid spaces where the drills are underway. But
the ongoing typhoon season has made it riskier to divert ships through the Philippines
Sea, experts say.

Meanwhile, nearly
400 flights from major airports at Fujian, the Chinese province closest to
Taiwan, have been cancelled, indicating that the military drills may impact the
area. The Taiwan cabinet has said military drills may impact 18 international
routes passing through its flight information region (FIR).