Tensions surrounding the Strait of Hormuz are undermining the stability of global logistics arteries, while US-China trade is showing signs of stagnation. Meanwhile, global trade volumes have reached an all-time high.
As tensions in the Middle East rise, there are reports that the heightened tensions around the Strait of Hormuz could affect the stability of major global logistics routes. The stagnation in US-China trade has also been reported, with uncertainty spreading across global economic supply chains.
Views on the risks and opportunities surrounding business in China are presented, including the observation that Japan and China have strong geographical and supply-chain ties and that severing them is not realistic. Statistics from Japan's Ministry of Foreign Affairs show that Japanese companies have approximately 77,000 locations overseas, with China the largest concentration, accounting for approximately 30,000. The high level of dependence on China, particularly among small and medium-sized enterprises, is also highlighted, underscoring the need for caution in management strategies.