British think tank: global supply chain will accelerate reorganization, China will still play a “key role”
London, September 1st. David Ramirez, an analyst at the London Institute of International Strategy, a British think tank, recently posted a commentary on the Institute’s website, saying,After the new crown epidemic, the global supply chain will accelerate the reorganization,China will still play a “key role”,Large-scale “economic decoupling” between countries and China is impractical.
The article titled “New Coronary Epidemic: Global Trade and Post-epidemic Supply Chains” says,The epidemic impacts international trade and global supply chains,The impact on multinational companies is particularly obvious.Multinational companies may re-plan the production layout,Shift to localized and regional production.
pointed out thatCountries are unlikely to engage in large-scale “economic decoupling” from China.First of all,Production relocation and supply chain reshaping are extremely complex,Time-consuming and costly.Secondly,Despite the continuous development of manufacturing in some Southeast Asian countries,But it is still highly dependent on imported raw materials and parts from China,And there is a big gap with China in terms of infrastructure.third,The size of China’s economy and population is unmatched by other countries.Many multinational companies set up factories in China,An important reason is that this gives them more opportunities to directly contact China’s 1.4 billion consumers.
The article pointed out thatAfter the new crown epidemic,Reliability will replace low cost,Become the main goal of supply chain management.China’s complete infrastructure, huge economic volume, and vast consumer market,It provides a reliable production and trading platform for multinational companies.