Supply Chain Resilience: It's not about going it alone

Editor's note: Lily Lyu is the anchor of CGTN. The article reflects the author's opinion and not necessarily the views of CGTN.

Supply Chain Resilience: It's not about going it alone

At the 4th China International Supply Chain Expo (CISCE), the conversation around supply chains feels more urgent. With the Middle East conflicts and the Strait of Hormuz disruptions, the ripple effects are still unfolding — and they're going to shape global trade for years to come.

Coming out of the forum I hosted, one sentiment stood out — one that nearly everyone agreed on: "industrial and supply chains must not falter at critical moments — this is an essential feature of a major economy." That urgency was palpable in every discussion.

When people talk about "resilience," they often think about backup plans, extra inventory, and alternative suppliers. But after listening to all these speakers today, from logistics, ports, banks, insurance, and customs, I realized something.

Real resilience isn't just about having a Plan B. It's about the entire chain working together. Here is a breakdown of what I heard.

Build redundancy into the system, not as an afterthought

A speaker from the Chinese Customs gave us a number. AEO companies make up only 2% of all import-export businesses in China — but they handle almost 44% of the country's total trade volume. That is collaboration built into the system. As the World Bank study suggests, every 1% increase in global supply chain participation raises per capita income by over 1% — a reminder that openness, not closure, is the real enabler of resilience.

Visibility and redundancy go hand in hand

Mr. Eggebeen from Holland International Distribution Council said customs authorities often get cargo information after goods have already arrived — which is too late. Real resilience means everyone, from shippers, ports, to customs, sees the same data in real time.

Sinotrans proved this point in practice. Mr. Wang from Sinotrans shared that when the Red Sea crisis hit, they had redundant routes ready — air, rail, sea — and pivoted a client's entire supply chain through Dubai overnight. That was not luck, but visibility plus preparation. This echoes a broader trend: multinational companies are shifting from purely "cost and efficiency" to balancing "efficiency and security," making local presence a strategic necessity rather than an option.

Resilience happens on the ground, locally

A great point was made by Mizuho Bank's Maruki Kentaro. He said Chinese companies are no longer just exporting products — they're exporting entire production systems. And the key to resilience is respect for local culture and growing alongside local partners. That is particularly critical for China, which accounted for approximately 30% of global manufacturing value added as of September 2025, according to the Ministry of Industry and Information Technology — a scale that makes "going local" not just a business choice, but a shared responsibility with host economies.

One weak link breaks the whole chain.

The speaker from PICC shared a point worth noting: We often assume the biggest risks are the obvious risks, like fires or floods. But in a chip factory, the real threat might be a supplier two tiers up who didn't have a backup plan. The loss from a broken link can be just as devastating as a natural disaster. Consequently, PICC does "chain-based" insurance — scan the entire chain, find the weak links, and cover even the smallest suppliers. Because one missing screw could ground an entire airplane.

Resilience is not about making one link stronger. It is about making the entire system smarter — visible, connected, redundant. That only happens when everyone collaborates.

China, a builder and defender of supply chains

Indeed, China is making every effort to act as a stabilizer in global industrial and supply chains. At the forum, Vice Chairman Nie of CCPIT said: "'Decoupling' leads nowhere. The key to promoting supply chain cooperation lies in strengthening connections." 

"In a world full of uncertainty, identifying risks, strengthening compliance, and adjusting supply chain layouts has become an essential lesson for every business."

That is not just theory. That is what we see at CISCE.

That is why I return to the event year after year. It is a place where "together" happens, where conversations become collaborations, and collaborations become a stronger chain for all.

(Cover via VCG)