Strong brands promote supply chain resilience

In the past few years, industry and supply chains have been reshaped as many developed countries have tried to promote nearshoring or friendshoring on the grounds of "de-risking". While in response to this, China has been vigorously enhancing its high-tech self-reliance and the security of its industry and supply chains.

Compared with the United States and Europe, China has markedly lower inflation and interest rates. Even if some enterprises in labor-intensive industries affected by high tariffs have transferred overseas, their production still relies on the supply chains in which China is a key link.

As the European and US consumer markets become more price sensitive due to the impact of inflation, China's cost advantages have been further strengthened. Its lower interest rates also add to its comparative advantages to keep production costs low.