U.S.-China disputes are escalating global risks

February was a month of renewed tension between the United States and the People's Republic of China. As the U.S. elections approach, the possibility of Trump running for and winning the elections has come to light, and it's now being discussed that the risks at the end of the election period will be based on the sanctions Trump initiated against the People's Republic of China. However, even before this process begins, we can see that tension has risen in February.

Two news stories have made international headlines on this issue.

German manufacturer's cars were held at U.S. Customs! Why?

Financial Times reported on Wednesday that over a thousand German-made vehicles were seized by U.S. customs officials at ports in the United States due to a Chinese component violating anti-forced labor laws.

In a statement, the German manufacturer said the issue was related to a small electronic component and that parts were being replaced as they arrived.

FT reported that the issue was discovered in mid-January but it is not known how much the vehicles were delayed. The German manufacturer said the delay for individual customers could last until the end of March.

The reason for stopping the products at U.S. customs is the source of the mentioned electronic product, which is claimed to be the work area of the Uyghurs, the "Forced Labor Camps" in Western China.

The German manufacturer has been criticized by U.S. and European politicians and human rights groups for its presence in Xinjiang, which has led to international condemnation, including allegations of forced labor by Beijing.

The German manufacturer, defending itself on this issue, claimed in an audit conducted recently that forced labor or child labor regulations were not violated according to United Nations standards.

We have no way of knowing the truth of the allegations or defenses in this regard.

However, it is a very important issue for a European manufacturer's goods to be stopped and seized at U.S. customs due to Chinese parts.

A financial company is listed on the sanction list for the first time!

The second issue causing dispute is the addition of a Beijing-based private equity and venture capital firm to the list of companies alleged to have close ties with the Chinese military by the Pentagon. The sector of this company is different; the list previously consisted only of technology companies and manufacturers. The mentioned company included in the sanctions list is the first private equity and venture capital company on the list.

The private equity and venture capital firm, which is claimed to play an important role in providing know-how to China's military investments, is feared to spread "sanction risk" to other financial companies in the relevant sector.

In other words, the disagreements are growing. Fronts are being formed!

The Global Order is established through War!

We are going through a period where it is not possible to list global risks one by one. In addition to existing wars and ethnic destruction, the presence of a rising risk in every region is evident. Disagreements are growing. Hopefully, disagreements will be resolved through diplomacy. However, it should not be forgotten that our existing world order was established with World War II. The dominance of the "Dollar" as a soft but effective power was established at that time.

Although the "Dollar" serves as a soft power, the presence of military power behind it keeps it standing. So, at the end of the day, you have as much economic power and sovereignty as the weapons and courage you have.

Türkiye's needs are also met from this perspective.

We are grateful to Erdogan.

Under such difficult conditions, he succeeded in producing and conducting the first flight of our National Combat Aircraft KAAN, in addition to UAVs and drones. It is said that those who do not have power in the field have no say at the table. Erdogan is achieving great successes with great sacrifices to ensure national security with every step he takes. The economic consequences of these steps will undoubtedly be significant.