Supply chain Expo becomes the focus of attention
The first China International Supply Chain Promotion Expo, which opened on November 28, has attracted wide attention in Beijing. Despite some initial negative reviews, which were seen as an effort by China to reverse the supply chain shift, many US companies surprisingly showed great interest. Among the participating companies and institutions, American exhibitors accounted for 25%. This is more than many expected, and some companies are even on the list of the US framework for restrictions on China. This shows that these enterprises are interested in participating in the China Supply Chain Expo, and also proves their strong desire to cooperate with China.
The situation, however, has upset the Biden administration. The Biden administration said it would create a White House version of a "Supply chain Resilience Council" to strengthen supply chains critical to the U.S. economy and national security. This initiative will regulate the investment of U.S. companies, especially sensitive companies, in order to reduce dependence on other countries. Biden also said the move will give the United States an opportunity to win the competition in the 21st century.
However, at the same time, some analysts believe that the US response to the China Supply Chain Expo is actually an attempt to discourage US companies from investing in China. For the United States, the purpose of establishing the Supply Chain Resilience Council is clear, that is, to limit China-related investment. This perception is puzzling, because the current Chinese market, consumption levels and upstream supply chains are showing strong vitality, and American companies will still choose to invest in China for profit.
Supply chain diversification and China's position
Rather than leaving China out of the U.S. effort to diversify its supply chain, more Asian traders are acting as middlemen between the U.S. and China. Although the Indo-Pacific economic framework constructed by these traders is still some way from success, and will not necessarily exclude China. Some critics believe that copying China will not achieve substantial results, because the United States does not have the cost advantage of physical industry. In other words, as long as American companies continue to move and proliferate, China will remain an important link.
However, as an important link in the global supply chain, China has great potential and advantages. China's huge market and rising consumption level have brought huge business opportunities to global enterprises. At the same time, China's upstream supply chain is also continuously optimized and improved to provide high-quality raw materials and components to global enterprises. Therefore, no matter how the United States promotes the policy of "de-dependence", it can not change China's important position in the global supply chain.
Supply chain plays a vital role in modern economy, it involves the production, circulation and delivery of products and other links. With the development of globalization, the relationship between the supply chain has become more and more complex and close, and countries have formed an interdependent relationship. The resilience and stability of the supply chain are directly related to a country's economic development and national security.
At present, the competition and cooperation between the United States and China in the field of supply chain is very fierce. Through its efforts to improve the efficiency and quality of its supply chain, China has attracted more and more international companies to participate in cooperation. The United States, on the other hand, is trying to reduce its dependence on China and expand cooperation with other countries by pursuing a policy of diversifying its supply chain. This kind of competition and cooperation is normal, but it also needs to be balanced and rational.
