Quote (ofthevoid @ 10 Aug 2024 17:43)
If we can waste hundreds of billions in Ukraine, because it's a 'good investment' to weaken Russia, maybe China is operating under a similar premise? Ultimately this spends US/Western military munitions and dollars to enforce this corridor and exhausts our will to continue to do so as it turns from weeks to months then years. And ultimately, it's the western European consumers paying the biggest price in the from of goods inflation.
Neither of those solutions are good ones, i think there's a 3rd realistic solution, which is Israel slows its roll in Gaza/Lebanon, with Houthis backing off and some regional deescalation. But this is highly dependent on Israel who right now is emboldened to weaken their enemies while they have someone friendly and willing to spend US billions (assuming Trump is elected)
I disagree with the idea that the Houthis would back off just because Israel slows down. If an official ceasefire in Gaza is struck, then I can imagine it, but not if they just reduce the intensity of their campaign.
Also note that supply chains are highly globalized these days, a disruption to the EUR-East Asia corridor will also lead to goods inflation for American consumers. Maybe not as high as for the Euros, but still.
Regarding China, this calculus might hold true during normal economic times - but they're suffering from a veritable economic slump at the moment while sitting on a gigantic housing bubble. Not sure if this is the moment they want to suck up avoidable economic costs to make very indirect, peripheral gains in the geostrategic sphere.