April 2024

Chinese/American tensions are back on the rise as we continue down a path of bullish global relations. These heightened tensions are continuing to affect the global supply chain and the environment of international trade. Recently, the Wall Street Journal posted an article exposing communications devices hidden in Chinese-produced container cranes at major U.S. ports. China has slipped down to the United States' third-largest trade partner after being its number one, and as tensions continue to rise, it is expected that trade issues will continue to rise.

The Wall Street Journal did not explicitly say which port was affected by these communications devices or go into detail about the spread of the problem, but it is said that 85% of the container cranes in the United States come from this Chinese Company, ZPMC. The manufacturer of these cranes explicitly claims that these communications devices are not placed with malicious intent and says that even the accusation of espionage ties to the Chinese communist party will significantly affect their reputation and business. They also did not say what the devices were intended for, if not for nefarious purposes.

China's diplomatic challenges continue to stretch beyond its tensions with America, as evidenced by its recent conflict with the Philippines. While the Philippine Navy was en route to resupply a remote military outpost, China persisted in blockading Philippine ships using water cannons and other tactics. The future relationship between these two Asia-Pacific nations, which share proximity to major trade routes, remains uncertain.