Impact Of Disruptions In The Strait Of Malacca On China’s Economic

The Strait of Malacca is the most convenient maritime transport channel between Pacific and Indian Ocean, and also the sea link among Africa, Asia and Europe. With the rapid development of globalization, the strait is of increasingly prominent strategic position and value to the whole world. The smooth flow of the Straits of Malacca is directly related to China’s economic security even the whole country’s stable development, which highly depending on overseas resources and markets, and depth integrating into the world economy. According to statistics data, the Malacca Strait carries about 60% of the import and export cargo and 77% of imported crude oil transporting to China, which has become the lifeblood of China’s export-oriented economic development. However, terrorism, pirate attacks and other emergencies which occur frequently in the strait in recent years, threaten the security of it. In this case, analyzing economic impact on different industrial sectors in China provides scientific basis to develop emergency response mechanism and macro-control policies, which could minimize economic losses of domestic industries as much as possible and resume production activities as soon as possible.Firstly, this paper describes the Straits of Malacca’s significant to China’ economy based on the overview of the natural situation in aspects of its irreplaceable, geo-strategic significance and the strategic importance. Then by summing up the traditional and non-traditional security factors faced by the strait, we can see that the situation of the straits has been improving, but threaten factors could still occur in the future.Secondly, this paper build the China’s industry economic impact model after certain conditions assume, some variable setting on the basis of qualitative analysis.In order to estimate the impact on China caused by outage of strait, this paper put industrial inoperability, direct and indirect economic losses as standard to measure.It found that incur the most severe impact industries are drawn metal smelting and rolling processing industry, chemical industry, petroleum processing, coking and nuclear fuel processing industry, transportation equipment manufacturing industry as well as general, special equipment manufacturing,which should be served as focus by macro-control measures; Finally, based on the above qualitative and quantitative analysis, this paper develops appropriate emergency response measures from aspect of decision-makers and business managers respectively. The measure has certain practical value to reduce the economic losses caused by unexpected disruptions occurred in the strait.