Understanding the Dependence of G7 and BRICS Countries on the Taiwan Strait
As China continues to engage in military exercises near Taiwan and reaffirms the possibility of using force to bring Taiwan under its control, concerns have been raised about the potential impact of Chinese actions on global trade via the Taiwan Strait. This article visualizes the proportion of exports and imports that pass through the Taiwan Strait, focusing on the G7 and BRICS countries. The data is sourced from the Center for Strategic and International Studies (CSIS) and is current as of October 2024.
Which Countries Depend Most on the Taiwan Strait?
This section details the proportion of exports and imports transiting through the Taiwan Strait by both G7 and BRICS countries. Overall, BRICS countries, particularly China, the United Arab Emirates, and Iran, are more vulnerable to disruptions in trade routes in the Taiwan Strait. The latter two countries see 24% or more of their exports pass through the strait.
China and Japan are the countries most dependent on the Taiwan Strait for both imports and exports, especially imports. Nearly a third of both countries’ imports transit through the Taiwan Strait. CSIS reports that over 95% of Japan’s crude oil, sourced from a select group of Middle Eastern countries, is transported through the Taiwan Strait, making this route crucial for Japan’s energy security.
While CSIS estimates that 15% of China's exports pass through this waterway—a relatively lower proportion than other countries—the total value of these exports still exceeds $551 billion. The Taiwan Strait is not only vital for China’s international trade but also plays a significant role in its domestic commerce. More than half of the voyages through the strait connect the numerous ports along China’s eastern seaboard, according to CSIS.
Apart from Japan, G7 countries generally have a much lower dependence on the Taiwan Strait. The U.S., UK, Canada, Italy, Germany, and France each have single-digit percentages for imports and exports through the strait.
The Taiwan Strait has witnessed multiple major crises between China and Taiwan since the 1950s, many of which involved military confrontations such as artillery bombardments, missile tests, and naval deployments.
For more insights on how G7 and BRICS compare in other areas, refer to this graphic that compares G7 and BRICS countries by GDP.
Bottom Line
The Taiwan Strait's strategic importance to global trade, especially for certain countries, is undeniable. As tensions continue to rise in the region, it's essential to understand the potential impact of any disruptions to this crucial trade route. What are your thoughts on this issue? Share this article with your friends and discuss. Don't forget to sign up for the Daily Briefing, available every day at 6pm.
Understanding the Dependence of G7 and BRICS Countries on the Taiwan Strait
As China continues to engage in military exercises near Taiwan and reaffirms the possibility of using force to bring Taiwan under its control, concerns have been raised about the potential impact of Chinese actions on global trade via the Taiwan Strait. This article visualizes the proportion of exports and imports that pass through the Taiwan Strait, focusing on the G7 and BRICS countries. The data is sourced from the Center for Strategic and International Studies (CSIS) and is current as of October 2024.
