Question

Please follow the links and read the two articles on China’s efforts to build islands and increase military presence in the South China Sea. Address the bulleted items in 150 to 200 words or more. Use additional research to support your answers and remember to cite your sources. The purpose of this discussion is explore the delicate global markets and get you thinking about how you might mitigate disruptions in the supply chain.

Base you post on the following:

• From the articles what do you think is the motivation by China to create these islands?

• What affect will an expanded Chinese presence in the South China sea have on its local trading partners?

• As a Supply Chain Manager you have to stay on top of the news. What do you predict will happen and how will it affect international trade to and from the US?

Links: Showdown in the South China Sea: China’s artificial islands explained https://www.yahoo.com/news/showdown-south-china-sea-china-172545207.html

South China sea tensions could hurt trade into Alabama port http://www.al.com/news/index.ssf/2016/10/south_china_sea_tensions_could.html

Answer 1

China has multifarious interests behind building islands in the South China Sea. On one hand, these islands will help the country in boosting its military might, these may also help the country in strengthening its economic grip as well. The country plans to use these islands as base for its industrial production. China will also use these islands for boosting its marine business where it claims marine natural resources such as fish. These islands may disrupt international supply chain for several items especially marine products such as fish.

As China lays sovereignty to these islands, many other countries may have to alter their sea routes, which may have significant impact on foreign trade. Such restrictive access to the sea will likely increase the cost of international trade and jeopardize the growth of the international trade.