SUMMARY 
From August 10-13th, the China’s People’s Liberation Army Navy (PLAN) conducted a naval drill during in the East China Sea. The drill came during the same period Taiwan’s leader Tsai Ing-wen started her South America trip. Due to this naval drill, all civilian vessels and merchant ships were banned from entering restricted areas, which was from the northeast maritime area of Rizhao to the southeast maritime areas of Qingdao in Shandong Province, China. On Saturday, August 11, the PLAN conducted air defense and anti-missile live-fire exercises in the East China Sea with the goal of integrating air defense from land to sea. Live fire exercises were conducted utilizing anti-ship missiles. The PLAN has recently conducted a drill from July 18-23. During the last drill, the PLAN conducted live-fire in an area similar to the size of Taiwan. Some analysts felt the significance was a clear warning to Taiwan.
FAO GLOBAL ASSESSMENT
This naval drill affected maritime businesses which relies on these two ports. Moreover, foreign ships who enter from Rizhao and Qingdao were forced to divert to other ports. The drill added increased transportation costs in both lost time, port fees, and late products. As a result, the margins for transporters were likely decreased. In order to avoid such costly shipping for companies, logistics companies should be aware of upcoming military drills and have alternate plans in place to avoid costly delays. Additionally, policy makers & military planners in China should be encouraged to provide more warning for already planned military drills. Drills of this nature often take months to plan and providing adequate notice to the business and local communities will help mitigate disruptions. This announcement will both save time and money when doing trade with China and create a more stable atmosphere.
Related Links
- South China Morning Post: China flexes its military might with series of naval exercises in local waters
- South China Morning Post: Hong Kong military garrison mounts its ‘biggest’ anti-terror drill
- Global Times: PLA begins E.China Sea drill
- Business Insider: China ‘prepares for battles’ against US, Japanese missiles in tense East China Sea
- Japan Times: China kicks off ‘major’ military exercises as Taiwan leader prepares for trip abroad to salvage few remaining allies
Analyst Bio
Ziqing Zhang- International Policy Associate
Ziqing “Sunny” Zhang is an international policy intern and a Masters student in the Elliott School of International Affairs at George Washington where she is majoring in Asian Studies with a concentration in international development and focusing on East Asia and development in Southeast Asia. A native Chinese speaker, Ziqing is fluent in both Mandarin and Cantonese as well as English. She has previously interned at the U.S.-China Education Trust, the Japan-American Society of Washington, DC, and is an alum of American University in Washington, DC.
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