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China's economy faces threats amid Red Sea crisis and shipping disruptions

Xi Jinping at the Asia-Pacific Economic Cooperation (APEC) summit in San Francisco

China's ambitions as a global power are being put to the test as the crisis in the Red Sea escalates. Yemen's Iran-backed Houthi rebels have been launching attacks on commercial shipping in the Red Sea in response to Israel's military campaign in Gaza. These strikes have not only disrupted global supply chains but also pose a significant challenge to China's export-oriented economy.

The attacks by the Houthi militants have effectively diverted one of the world's major trade routes, leading to concerns for China, the largest exporting nation globally. Thus far, China's response has been limited to urging an end to attacks on civilian ships and offering veiled criticism of US-led strikes against the Houthis in Yemen. China has emphasized the importance of respecting the sovereignty of countries along the Red Sea, including Yemen, and expressed its commitment to working with all parties to ease tensions in the region.

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