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South China Sea conflict could be IT’s Black Swan

Discussion in 'Network World' started by RSS, Aug 15, 2016.

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    RSS New Member Member

    The vast majority of the world’s electronics -- its servers, PCs, mobile phones -- are now manufactured in China. This means any inadvertent escalation over the on-going South China Sea territorial dispute could do more than raise geopolitical tensions.

    It could easily disrupt electronics manufacturing for the world.

    About 84% of the world’s electronics are made in Asia, and about 85% of those goods are made in China, said Michael Palma, an analyst at IDC. “All that product flows through the South China Sea,” said Palma.

    China is claiming much of the South China Sea as its own territory after building artificial islands in the Spratly archipelago -- and it's ignoring a recent international tribunal ruling against its territorial claims, further stirring regional tensions.

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