British think tank——
Global supply chain will accelerate the reorganization of China will still play a "key role"
Xinhua News Agency, London, September 1. David Ramirez, an analyst at the London Institute of International Strategy, a British think tank, recently published a commentary on the Institute’s website, saying that after the new crown pneumonia epidemic, the global supply chain will accelerate restructuring, and China will still play "Key role", large-scale "economic decoupling" between countries and China is impractical.
The article entitled "New Coronary Pneumonia Epidemic: Global Trade and Post-epidemic Supply Chains" stated that the epidemic has impacted international trade and global supply chains, and its impact on multinational companies has been particularly pronounced.
Multinational companies may re-plan their production layout and shift to localized and regionalized production.
The article pointed out that countries are unlikely to carry out large-scale "economic decoupling" from China.
First of all, production relocation and supply chain reshaping are extremely complicated, time-consuming and costly.
Secondly, despite the continuous development of manufacturing industries, some Southeast Asian countries are still highly dependent on imported raw materials and parts from China, and there is a large gap with China in terms of infrastructure.
Third, the size of China's economy and population is unmatched by other countries.
An important reason why many multinational companies set up factories in China is that it gives them more opportunities to directly contact China's 1.4 billion consumers.
The article pointed out that after the new crown pneumonia epidemic, reliability will replace low cost and become the main goal of supply chain management.
China's complete infrastructure, huge economic volume and vast consumer market provide multinational companies with a reliable production and trading platform.