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South China Sea conflict could be IT’s Black Swan

Patrick Thibodeau | Aug. 16, 2016
The U.S. is completely dependent on Asia -- mostly China -- for hardware

But if something were to happen -- a miscalculation, a mistake by a sea captain, a rocket launch -- the consequences could be severe.

It is estimated that $5.3 trillion in trade passes through the South China Sea, with the U.S. accounting for more than a trillion of it, said Srini Sitaraman, associate professor in Clark University’s political science department.

“The economic repercussions of a large-scale naval conflict in the region are not only worrisome because of its escalatory impact, but the economic consequences could be severe and could potentially halt our way of life as it works right now,” said Sitaraman.

“If something escalated in the South China Sea, a lot of companies are at significant risk," said Gary LaPoint, professor of supply chain practice at Whitman School of Management, Syracuse University. "But so is China, because China gets a lot their business from us."


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