A vessel identified by the Philippine Coast Guard as "Chinese maritime militia" (back R) and a China Coast Guard vessel (front R) sailing near the Philippine military chartered Unaizah May 4 (L) during its supply mission to Second Thomas Shoal in the disputed South China Sea on March 5, 2024.
Some of the world's busiest shipping lanes are at risk due to rising tensions in the South China Sea, experts warn.
In recent months, skirmishes have escalated in the highly-contested South China Sea – a marginal sea in the Western Pacific ocean that's a crucial trade route for China, Japan and India, three of the world's biggest economies.
These developments in the South China Sea should be on the radar of global markets and supply chains due to the importance of these waterways to international trade, according to Marko Papic, chief global geo-macro strategist at BCA Research.
"The South China Sea is the most valuable shipping lane in the world in terms of the value of trade that transits through it," Papic told CNBC, noting that conflict there poses obvious risks to global shipping.
Persons:
Thomas Shoal, Marko Papic, Papic
Organizations:
Philippine Coast Guard, China Coast Guard, Philippine, Unaizah, Beijing, BCA Research, CNBC
Locations:
China, South China, Japan, India, Philippines, Vietnam, South, U.S