Why is Singapore flustered? Because most of the tolls in the Straits of Malacca are paid by China, and the protection fees he paid to the United States are also paid indirectly by us! Now that we have opened the route by ourselves, doesn't he panic?
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Speaking of the reasons for Singapore's recent panic, the key has to start with the Strait of Malacca. Although this strait is only 1080 kilometers long and only 2.8 kilometers at its narrowest point, it holds the lifeblood of global trade.
A quarter of the world’s maritime cargo has to pass through it, with about 140 tankers crossing every day, more than the Suez Canal and the Panama Canal combined.
More importantly, 60% of these ships are goods to and from China. Almost everything from daily necessities to industrial raw materials, such as iron ore and liquefied natural gas, rely on this waterway to transport.
For China, the Strait of Malacca is not only a trade channel, but also an energy throat.
The country consumes about 14 million barrels of oil per day, accounting for 14% of the world's total, while production is far from enough, and 72% of oil depends on imports.
If an accident occurs, such as a shipyard accident or blockade, domestic energy reserves may only be supported for 40 days, refineries reduce production, household gas breaks, and industrial losses can reach hundreds of billions.
For Singapore, the Strait of Malacca is almost its "cash cow." As the hub of the eastern mouth of the Strait, Singapore has made a lot of money from port fees, pilotage fees, and ship maintenance fees, and has become the world's largest fuel supply port.
More interestingly, Singapore is home to a U.S. aircraft carrier battle group, which pays large military expenses annually to the U.S. to buy weapons and operate security bases, in fact indirectly from China’s trade contributions.
In other words, Chinese ships not only bring economic benefits to Singapore, but also invisibly pay for Singapore's military protection.
However, this “unique” situation is being silently broken by China.In July this year, China opened a new route – “Zhengzhou” from Kunming, through the Old Railway to Laos, switched the road to Thailand’s Large Port, directly into the Indian Ocean, and finally to Yangon, Myanmar or the Port of Bangladesh.
This route is close to 1,700 kilometers from the traditional Malacca route, shortening transport time from 40 days to 17 days and doubling efficiency. More importantly, this is not an isolated event, and China is still setting up several alternative routes to the Arctic route, the Central European Line and the port of Guadalcanal in the Indian Ocean, making Malacca no longer the only option.
The Arctic route has become a reality in recent years. In 2024, the freight volume will reach 37.9 million tons. From Europe to China, it will be 5,500 kilometers less than Malacca, saving 15 days in time and reducing transportation costs by 20%.
China-Europe trains and China-Laos railway trains also provide stable and reliable land alternatives when transporting high-value goods. The construction of Gwadar Port in the Indian Ocean eliminates the need for oil imported from the Middle East to bypass Malacca, saving about US $200 million in freight costs every year.
The construction of new channels in Southeast Asia is also accelerating: Cambodia’s De Chongqing South Canal is under construction and is expected to open in 2028; and Thailand’s Kra Canal, although still in the planning phase, once opened, will be able to disperse about 20% to 30% of the vessels in Malacca.
Overall, China is gradually forming several alternative channels to break the single dependence on Malacca.
The opening of these new channels means direct economic pressure for Singapore. Port and logistics revenue that used to rely on Malacca for navigation may now be diverted. China is diverting routes to reduce the number of ships passing through, and high-value cargo from East Asia to Europe may no longer choose Singapore ports.
Together with the gradual maturity of the Arctic route and the Central European line-up, Singapore’s “hegemony” position in regional trade may be shaken. For Singapore, the importance of Malacca is not only economic, but also strategic position and international speech – China’s new layout challenged this advantage.
Of course, the purpose of China's new routes is not to "grab business" or suppress Singapore, but to ensure its own energy and trade security.
The Malacca Strait risks shipping accidents, piracy attacks, or military risks every year, while China’s export and import dependence is too concentrated and once blocked, it will have a serious impact on the domestic economy and livelihoods.
The layout of the new route is to actively increase resilience, reduce the risk of a single channel, and make the country's economic operation safer and more stable.
In the long run, China’s new route strategy has not only enhanced its own shipping and energy security, but also reshaped the regional trade pattern.In the past, high-value goods and energy resources were heavily dependent on Malacca, and Singapore had “one-bill pass”.
Now that multiple alternative routes coexist, East Asian countries can choose the best route to improve transportation efficiency and reduce risks. At the same time, this layout has also prompted neighboring countries such as Singapore, Thailand, and Cambodia to adapt to the new shipping pattern and find new cooperation and economic opportunities.
It can be said that China's new waterway strategy is a typical "resilience + autonomy + security" strategy.In the context of globalization, it is not reliable to monopolize a certain channel alone, and the real win-win is through the construction of more secure and efficient transportation networks, so that all parties share convenience and economic benefits.
In the future, the Strait of Malacca will still be important, but China is no longer passively dependent. It has the ability to choose the safest and most efficient route, which also provides a solid guarantee for national development and energy security.
Please click "Follow" in the upper right corner of the officials to facilitate your discussion and sharing. Thank you for your support!
Speaking of the reasons for Singapore's recent panic, the key has to start with the Strait of Malacca. Although this strait is only 1080 kilometers long and only 2.8 kilometers at its narrowest point, it holds the lifeblood of global trade.
A quarter of the world’s maritime cargo has to pass through it, with about 140 tankers crossing every day, more than the Suez Canal and the Panama Canal combined.
More importantly, 60% of these ships are goods to and from China. Almost everything from daily necessities to industrial raw materials, such as iron ore and liquefied natural gas, rely on this waterway to transport.
For China, the Strait of Malacca is not only a trade channel, but also an energy throat.
The country consumes about 14 million barrels of oil per day, accounting for 14% of the world's total, while production is far from enough, and 72% of oil depends on imports.
If an accident occurs, such as a shipyard accident or blockade, domestic energy reserves may only be supported for 40 days, refineries reduce production, household gas breaks, and industrial losses can reach hundreds of billions.
For Singapore, the Strait of Malacca is almost its "cash cow." As the hub of the eastern mouth of the Strait, Singapore has made a lot of money from port fees, pilotage fees, and ship maintenance fees, and has become the world's largest fuel supply port.
More interestingly, Singapore is home to a U.S. aircraft carrier battle group, which pays large military expenses annually to the U.S. to buy weapons and operate security bases, in fact indirectly from China’s trade contributions.
In other words, Chinese ships not only bring economic benefits to Singapore, but also invisibly pay for Singapore's military protection.
However, this “unique” situation is being silently broken by China.In July this year, China opened a new route – “Zhengzhou” from Kunming, through the Old Railway to Laos, switched the road to Thailand’s Large Port, directly into the Indian Ocean, and finally to Yangon, Myanmar or the Port of Bangladesh.
This route is close to 1,700 kilometers from the traditional Malacca route, shortening transport time from 40 days to 17 days and doubling efficiency. More importantly, this is not an isolated event, and China is still setting up several alternative routes to the Arctic route, the Central European Line and the port of Guadalcanal in the Indian Ocean, making Malacca no longer the only option.
The Arctic route has become a reality in recent years. In 2024, the freight volume will reach 37.9 million tons. From Europe to China, it will be 5,500 kilometers less than Malacca, saving 15 days in time and reducing transportation costs by 20%.
China-Europe trains and China-Laos railway trains also provide stable and reliable land alternatives when transporting high-value goods. The construction of Gwadar Port in the Indian Ocean eliminates the need for oil imported from the Middle East to bypass Malacca, saving about US $200 million in freight costs every year.
The construction of new channels in Southeast Asia is also accelerating: Cambodia’s De Chongqing South Canal is under construction and is expected to open in 2028; and Thailand’s Kra Canal, although still in the planning phase, once opened, will be able to disperse about 20% to 30% of the vessels in Malacca.
Overall, China is gradually forming several alternative channels to break the single dependence on Malacca.
The opening of these new channels means direct economic pressure for Singapore. Port and logistics revenue that used to rely on Malacca for navigation may now be diverted. China is diverting routes to reduce the number of ships passing through, and high-value cargo from East Asia to Europe may no longer choose Singapore ports.
Together with the gradual maturity of the Arctic route and the Central European line-up, Singapore’s “hegemony” position in regional trade may be shaken. For Singapore, the importance of Malacca is not only economic, but also strategic position and international speech – China’s new layout challenged this advantage.
Of course, the purpose of China's new routes is not to "grab business" or suppress Singapore, but to ensure its own energy and trade security.
The Malacca Strait risks shipping accidents, piracy attacks, or military risks every year, while China’s export and import dependence is too concentrated and once blocked, it will have a serious impact on the domestic economy and livelihoods.
The layout of the new route is to actively increase resilience, reduce the risk of a single channel, and make the country's economic operation safer and more stable.
In the long run, China’s new route strategy has not only enhanced its own shipping and energy security, but also reshaped the regional trade pattern.In the past, high-value goods and energy resources were heavily dependent on Malacca, and Singapore had “one-bill pass”.
Now that multiple alternative routes coexist, East Asian countries can choose the best route to improve transportation efficiency and reduce risks. At the same time, this layout has also prompted neighboring countries such as Singapore, Thailand, and Cambodia to adapt to the new shipping pattern and find new cooperation and economic opportunities.
It can be said that China's new waterway strategy is a typical "resilience + autonomy + security" strategy.In the context of globalization, it is not reliable to monopolize a certain channel alone, and the real win-win is through the construction of more secure and efficient transportation networks, so that all parties share convenience and economic benefits.
In the future, the Strait of Malacca will still be important, but China is no longer passively dependent. It has the ability to choose the safest and most efficient route, which also provides a solid guarantee for national development and energy security.