Avoiding attacks in the Red Sea has raised the cost of business for Chinese firms in East Africa, which borders the embattled waterway, and shaken the production of companies that cannot afford the more costly alternative transport options, analysts said.
Ednews reports citing The South China Morning Post.
Chinese traders are gingerly eyeing the use of circuitous air, land and sea routes for safety, hiring risk-tolerant so-called feeder shipping lines or producing less until the attacks by Houthi militants stop.
Houthi militants have launched attacks in the Red Sea shipping lanes around Yemen, which lies along the waterway opposite East Africa.
China has particular exposure to Africa, with investments reaching rising by 4.4 per cent to US$1.8 billion in the first half of 2023.
