Sunday, February 25, 2024

Regulatory tensions between China and Taiwan put global supply chains at risk

Two thousand twenty-four is shaping up to be a year in which many new challenges can affect the stability of the supply chain on a global level. He said the Annual Risk Report 2024 made of Everstream, the growing tensions and regulatory frictions between China and Taiwan can create conflicts that affect other economies because of the importance of these markets for imports and global production of goods.

An increase in tensions may lead to the appearance of additional regulatory barriers for exports of semiconductors and HEADDRESS, which are also important components for the aerospace industry and information technologies.

In addition, disturbances in the Taiwan Strait may affect world trade since about half of the ships that travel around the world pass through its waters.

In the aforementioned report, the supply chain consulting firm also predicted more shortages of raw materials during this year, especially those from agriculture, such as natural rubber, rice, or soybeans. Likewise, restrictions on the export of primary agricultural products to countries such as India, Thailand, and Pakistan may create more problems in global markets.

The wave of protectionism is affecting the supply chain

Despite systematic evidence that protectionism has not achieved the goals desired by various economies, it is expected that trade disputes will increase in 2024, affecting various raw materials and products. The growing disputes in this area are increasing controls and sanctions on exports, causing problems in the supply chain.

This situation causes many companies to come together to create a strategy of diversification in their supply chain.

Las extreme weather conditions They are one of the many risks that logistics and transportation companies will face in 2024, according to Everstream. The frequency of extreme weather events, such as drought in the Panama Canal or winter storms exacerbated by record ocean temperatures, highlights the importance of being prepared for the acceleration of climate change, as these events can mean millions of dollars in losses for transportation companies.

Finally, the addition of environmental regulations also continues with the list of challenges identified by the American company. As countries pursue the goal of net zero emissions and seek to protect natural resources, companies face higher costs and administrative burdens, as well as various changes in production and transportation activities to comply with environmental regulations.

Faced with these different problems, the recommendation is clear: preparation and flexibility are essential to navigate the complex scenarios that await ahead of 2024.

World Nation News Desk
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