STRONGLINKS

Lan Xinzhen

Due to an array ofnegative factors，such as the COVID-19 pandemic， tradefrictions， geopolitical tensions， diplomatic conflicts， and natural disasters， the globalindustrial and supply chain is now in a bind. With themost complete industrial chain andbeing among the biggest exportersand importers in the world， China isunder close watch by the rest of theworld. In the first half of this year （H1）， in response to resurging COVID-19cases， Beijing and Shanghai enforceda strict dynamic zero-COVID-19policy， triggering concerns across the world over Chinas role in the globalindustrial and supply chain.

For now， these worries areundoubtedly overblown. China istaking action to ensure the securityof the industrial and the supply chain in major areas. As statistics releasedby the Information Office of the State Council on June 27 reveal， the volume of Chinas railway freight， shippingand postal services in H1 will surpass that of the same period of 2019.

China has always worked hard tosafeguard economic globalizationand the multilateral trade system.Stabilizing the industrial andsupply chains is a significant part ofsafeguarding economic globalization.

On April 18， the State Council held ameeting to discuss how to ensure the smooth operation of the countryslogistics as well as the industrialand supply chains. In May， theState Council issued documentsdemanding the provision of timelyand effective services to foreign-funded businesses to help them outof difficulties.

In the context of globalization，the stability of the industrial andsupply chains is the linchpin of global economic growth. The disruption ofthe chains may result in shortagesor stoppages in the supply of crucialraw materials， components andintermediate products. The supplyof core technologies and important transport logistics and international payments may also experienceinterruptions.

Even before the outbreakof COVID-19， global industrialdistribution was undergoingprofound changes： The worldeconomy is pivoting eastward， the development of technologies isbringing about a new industrialrevolution， and climate change andlimited resources are driving entities to turn to low-carbon and greenbusiness models. The pandemic hasheavily hit the industrial and supplychains， and thus ensuring its security has become an important target formajor economies. The United States， the European Union， Japan and India have accelerated the adjustmentof national policies to stabilizetheir industrial and supply chains.

However， due to restrictive COVID-19- related measures and shocks to theindustrial and supply chains fromthe Russia-Ukraine conflict， practices by these economies to balance thechains have so far failed to function. Particularly， the U.S.， from theperspective of ideological differences， is exacerbating the crunch bybrandishing sanctions and exercising trade unilateralism.

With a complete industrial system， a crucial role in the global division of labor and ever-increasing industrialcompetitiveness and capacity forinnovation， China has always tried to design its own development schemes to participate in globalization andcontribute to stabilizing the globalindustrial and supply chains.

China has been committed tosupporting the UNs leading role in governance of global supply chains. It is also ready to collaborate withthe rest of the world to promoteconnectivity in human andinformation exchanges， trade andcash flows and logistics.

Furthermore， China needs to plan its own role in the global industriallayout and in the construction of the global chains. The country shouldprepare to cope with damage caused by unilateralism onto the globalindustrial and supply chains andby certain countriesdeliberatelyundermining Chinas status in thechain.

Every economy， including China， is a part of the global industrial and supply chain， and the responsibility of ensuring its stability falls on theshoulders of all.