Political tensions between the US and China are causing a decrease in container shipments.
Jeremy Nixon, CEO of Japanese container and shipping company Ocean Network Express, said at the Capital Link Singapore Shipping Forum, “We’re seeing the leverage of trade between the US and China diminish. “Many companies in the US want to reduce the share of their imports from China,” he said.
Nixon, the CEO of the company, which is among the top 10 container companies, stated that the share of shipments from China to the USA fell by about 10 percent last year. Nixon pointed out that the trend of establishing stronger ties with other trading partners, including Europe, which started in the USA, will continue.
The world’s two largest economies have steadily grown less dependent on each other over the past year.
This was mainly due to a broad-based slowdown in the global economy. According to Nixon, this divergence is now exacerbated for geopolitical reasons.
As tensions flare up over the Taiwan issue and the alleged spy bubble over the US sky, President Joe Biden is preparing to sign a decree that will limit US investments in key parts of the Chinese economy.