Rather than building supply chains behind closed doors, shared global chains bring shared gains

Editor's note: The article was written by Zhou Jianjun, an assistant researcher at the Institute of State System Research and School of Economics, Zhejiang University. The article reflects the author's opinions and not necessarily the views of CGTN. It has been translated from Chinese and edited for brevity and clarity.

The 3rd China International Supply Chain Expo is being held in Beijing from Wednesday to Sunday. As the world's first national-level expo dedicated to supply chains, this year's event featured demonstration zones for six major industrial chains, i.e., Advanced Manufacturing Chain, Clean Energy Chain, Smart Vehicle Chain, Digital Technology Chain, Healthy Life Chain, and Green Agriculture Chain, alongside a Supply Chain Service Area. By adopting an open, inclusive, and win-win cooperation model across the chain networks, the expo aims to contribute meaningfully to the stability of global supply chains.

No country, including the sole superpower, can cut itself off from global supply chains

Global supply chains require participation from all countries, and building them behind closed doors is not viable. Today, human society is undergoing a shift from simple labor to more complex forms of production. The rising technological intensity and growing supply chain complexity make it virtually impossible for any country to manufacture every single component required for sophisticated products. This goal remains out of reach, even if a country aggressively pursues domestic substitution and attempts to localize its entire supply chain. 

On the one hand, from a technical perspective, every country has its own weaknesses in technology and industrial chains. For instance, China and the US hold each other at critical choke points, respectively, in rare earths and semiconductors. From an economic standpoint, even in fields where no technical barriers exist, many countries still opt for more cost-effective products from foreign suppliers due to their lack of comparative advantage resulting from high costs. As a consequence, global supply chains are deeply interwoven, with countries highly dependent on one another. No country, not even a superpower like the US, can truly decouple or sever itself from the global supply chain. Attempts to build closed, self-sufficient supply chains relying solely on domestic suppliers are neither technically feasible nor economically viable.

US unilateral tariffs create a lose-lose situation, harming others without benefiting itself

"Reciprocal tariffs" imposed by the US increase market access barriers and significantly disrupt the normal operation of global supply chains. At their core, these tariffs are a manifestation of protectionism and the "America First" agenda. They are implemented to prop up domestic manufacturing by imposing steep tariffs on competitive goods from other countries. In particular, the US seeks to reduce its economic dependence on China by decoupling and severing supply chains. Yet, these "reciprocal tariffs" have failed to deliver the intended results and have instead backfired. 

On the one hand, "reciprocal tariffs" have met with fierce opposition globally, with China retaliating by imposing equivalent tariffs. On the other hand, the US itself has been one of the biggest beneficiaries of global supply chains. Many American companies manage to minimize costs and maximize profits through global supply chains, while US consumers enjoy access to high-quality, affordable products. The supply chain disruptions caused by these tariffs have undeniably harmed the interests of these American businesses and residents. In trying to rebuild domestic manufacturing and supply chains, the US has ended up in a lose-lose situation, hurting others without benefiting itself.  

Supply chains act as bridges to strengthen global connectivity and enhance economic cooperation

In contrast, China has a comprehensive supply chain system and continues to promote mutually beneficial cooperation with countries worldwide. As the country with the world's most complete industrial categories, China is able to provide essential supply chain support for its partners, effectively helping them reduce production costs and improve efficiency. According to a study by Financial Times, the latest iPhone model contains 2,700 components sourced from 187 suppliers across 28 countries and regions. Only 30 of these suppliers are entirely independent of China, and less than 5 percent of the components are manufactured in the US. Without Chinese components and suppliers, global production would become paralyzed. 

However, China has never exploited its supply chain advantages to suppress the industrial development of other countries. Instead, it has fostered bilateral economic and trade interactions through supply chain collaboration. Many countries (such as Vietnam and Cambodia) have gradually built their own industrial systems with reliance on China's supply chains, as a result of which they have made significant strides in trade and economic development. China believes that supply chains should serve as bridges connecting countries and facilitating economic and trade cooperation, rather than walls that block and suppress others. Amid rising economic and trade uncertainty globally, only by expanding openness, integrating cross-border supply chains, and pursuing collaboration and mutual benefits can the global economy truly find a viable path forward. Rather than decoupling and erecting fences, the world would be better served by open cooperation and joint efforts to develop shared supply chains.