China hits back at West's derisking strategy at supply chain expo

Chinese Premier Li Qiang stated at the China International Supply Chain Expo that China opposes protectionism and aims to strengthen supply chain partnerships with all countries. This comes as multiple nations express concerns about their dependence on China for supply chains. Recent geopolitical tensions have led some foreign businesses to invest in other countries instead of China. The value of US and European investment in China has dropped, while investment in India has increased. However, a survey shows that 45% of firms still plan to expand their supply chain in China.

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Frequently Asked Questions

FAQ 1: What is China's stance on protectionism and supply chain cooperation?

Answer: China opposes protectionism and expresses a desire to strengthen supply chains with all countries. Premier Li Qiang emphasized this message, conveying China's interest in fostering closer ties and cooperation instead of decoupling. (Source: Reuters)

FAQ 2: How is the West's de-risking strategy affecting China?

Answer: The de-risking strategies implemented by Western countries are impacting China's economic prospects by prompting a reconsideration of dependency on the Chinese market for supply chains and influencing companies to localize their supply chains. This approach is driven by the intent to mitigate risks associated with over-reliance on China. (Sources: Reuters, Financial Times)

FAQ 3: What are some components of the EU's economic de-risking strategy in relation to China?

Answer: The EU's de-risking strategy includes four pillars aimed at bolstering the resilience and independence of its own economy and industry. By enhancing its internal capabilities, the EU plans to reduce its vulnerability to external economic pressures and dependencies. (Source: European Commission)

FAQ 4: What is the "China for China" strategy cited by Western companies?

Answer: The "China for China" strategy involves Western companies localizing their operations and supply chains within China to serve the Chinese market more effectively. By doing so, companies aim to minimize risk by diversifying their production locations and investing in local supply chains. (Source: Financial Times)

FAQ 5: Does China believe it can out-innovate the West?

Answer: According to an opinion piece, China seems confident in its ability to respond to the West's de-risking strategy by out-innovating Western countries. This could potentially be demonstrated in sectors such as solar-panel and battery production, where China already has significant supply chain advantages. (Source: American Enterprise Institute)

FAQ 6: What is the Chinese government's perspective on the cause of supply chain disruption?

Answer: A Chinese official has expressed the view that supply chain disruptions are primarily caused by actions from Western countries. The official suggests the West's de-risking and decoupling efforts are the main factors contributing to these disruptions. (Source: South China Morning Post)

FAQ 7: What role does China play in the processing of critical minerals?

Answer: China is a dominant player in the processing of critical minerals, controlling over 80 percent of the processing capacity. This is a point of concern for nations seeking to secure their clean-energy supply chains, as it presents a risk by concentrating critical processing in one country. (Source: The White House)

FAQ 8: How does the G7 view the concept of de-risking in relation to China?

Answer: The G7's approach is characterized by a preference for de-risking as opposed to de-coupling. The leaders aim to mitigate risks within the supply chain without entirely disengaging from economic interdependence with nations like China. (Source: The White House)