The Red Sea route is the most important maritime transportation route in the world, and the 2023 Red Sea crisis will further affect the struggling recovery of the world economy. Firstly, suspending the Red Sea route and detouring the Cape of Good Hope will significantly increase international transportation costs and shipping costs. Secondly, this sea area is also an important route for global oil transportation, with nearly one-third of the sea freight oil requiring to be transported through the Arabian Sea. Thirdly, the crisis may cause more profound economic impacts, and the increase in transportation costs will ultimately be passed on to consumers, causing inflation and affecting global economic growth.
For China, this crisis not only directly affects the Sino-EU trade route and significantly increases transportation costs, but also sounds an alarm for our energy security. We should pay attention to the energy trade security issues. There is a possibility of further deterioration in global geopolitical risks, and the consideration of energy security needs to be further expanded from the price security issues to trade security issues.
In response to various challenges, China should accelerate the construction of a unified national market, including the energy market, and fully utilize its important role in alleviating geopolitical risks and ensuring energy security. China's unified national market will enhance the diversity and flexibility of energy supply globally, and effectively support energy security and sustainable development.
