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Chinese firms urged to look overseas as Covid supply chain disruptions drive friendshoring trend
- China’s key advantage, despite economic headwinds, is its key role in global supply chains, senior state researcher Zhuo Xian points out
- Platform companies ‘will be key’ to Chinese aims to maintain leadership in global production networks, Zhuo tells The Paper
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Frank Tangin Beijing
China should encourage its companies – including platform firms – to participate in the regrouping of overseas industrial chains, as many developed countries look to reshore or friendshore production, a senior state researcher has said.
The call from Zhuo Xian, senior fellow at the Development Research Centre of the State Council, or China’s cabinet, comes as Beijing anticipates a more turbulent international environment in the coming year.
The headwinds faced by China include a potential global recession, bigger efforts to contain its technological advancements, and rising trade protectionism.
But China holds a key advantage – a significant role in global supply chains, accounting for about one-third of the world’s industrial output.
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This is likely to prevent the US from total economic decoupling, though fresh challenges for China include an unprecedented surge in Covid-19 infections and other points of international rivalry.
01:57
China condemns new US law aimed at boosting domestic semiconductor manufacturing
China condemns new US law aimed at boosting domestic semiconductor manufacturing
“Chinese companies should go out further,” Zhuo said in an interview with The Paper, a Shanghai-based digital daily, published on Friday.
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