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How Red Sea tension is hurting China's auto industry in EU, US

The Houthis initially claimed to be only targeting ships linked to Israel, but Chinese shipping is also in peril despite its friendliness to the Houthis' supporter Iran.
AFP via Getty Images

The Red Sea shipping disruptions of the past few weeks are making Beijing concerned its automobile exports, which contributed over $100 billion to the Chinese economy last year, are increasingly at risk.

Speaking at a Jan. 14 press conference in Cairo following a meeting with the Egyptian president, Chinese Foreign Minister Wang Yi called for an end to attacks on civilian vessels in the Red Sea. They began in October after the Yemen-based Houthi movement started targeting ships following the outbreak of the conflict in Gaza.

“The situation in the Red Sea has escalated sharply recently, and China is deeply concerned about this,” Wang said. “China calls for a halt to the harassment and attacks on civilian ships and for the maintenance of the smooth flow of global industrial and supply chains and the international trade order.”

Risks for China

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