China tries hard to sustain supply chain

Economist urges global cooperation to safeguard distribution network

A Japanese economist said China's efforts to sustain the global supply chain contribute and drive global economic growth. He emphasized that ensuring stability in the supply chain from China to the rest of the world is crucial for the smooth functioning of the worldwide economy.

During the first Trump administration, high punitive tariffs on China led Chinese companies to invest directly in Vietnam and Mexico, where they established local factories. This resulted in creating a new supply chain, routing goods from China through Vietnam and Mexico before reaching the United States, according to Hidetoshi Tashiro, chief economist at Infinity LLC, a Japanese consulting firm advising stock trading and real estate management.

This shift has significantly accelerated the industrialization of Vietnam and Mexico, driving economic growth and increasing national income.