#COVID19 has placed strains on the global value chain (#GVC). Many say a lot of manufacturers will move out of #China. Some are optimistic and do not worry about it much, since businesses are not likely to move out easily given the high costs, such as Huang Qifan, CF40 Advisor.
He says amid #GVC restructuring, countries will not easily decouple with #China as some Western politicians hope; instead, the transformation will be market-driven, with more vertical integration, and the GVC will be more diversified and resilient: mp.weixin.qq.com/s/fqBdcqQUZhyy…
However, Yu Yongding, CF40 Advisor, holds a more cautious view. He believes most people in the US economic community don't want to decouple (which is a good thing for China). But the problem is, will American politicians succumb to the business community’s demands for profits?
Prof Yu Yongding reminds that geopolitical factors must be taken into account when we take stock of the current value chain issues. China must be prepared for irrationalities of the US:
mp.weixin.qq.com/s/I3yhznAzF25G…
Most businesses can certainly decide at their discretion whether to stay in China or not, but China needs to ensure that its chains for strategically critical industries such as #5G are complete. It also has to keep the businesses that are important for its national security.
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