Contrary to the need being felt by numerous businesses globally for diversifying their suppliers out of China, no country is in a position to weed out China completely from either it’s supply chain or it’s list of buyers for high-tech products, as China features on top for both categories.
Following lockdown in Italy and China, many jewellery makers for example were unable to source precious metals and gift boxes which they used to source from these countries. Forcing them to learn the lesson of not being over-reliant on any single country for the supplies. The said businesses along with others are now looking at alternative suppliers from different countries to mitigate such risk, if the possibility of a global lockdown arises again in the future.
For companies which sell high-tech goods, China remains on their list of top buyers. To cite an example, China is one of the biggest buyers of industrial computers in the world presently, as it is pursuing the expansion of both – 5G as well as high-speed rail network in the mainland.
From being the biggest supplier to world economy, China today has become one of its most important buyers. And is expected to be the only country that is going to witness economic growth. In the same way as China has been a major driver of world trade for the past couple of decades, it is still going to retain this position for the foreseeable future.
Which country do you think is going to emerge in the future as a fitting substitute for the role played by China in today’s world economy?
Global Annal 