China
Chinese supply chains prove resilient to global shocks and pressure
Author: Ka Zeng, University of Arkansas
In the past couple of decades multinational corporations have invested heavily in China to cut production costs and capitalise on the rapidly growing domestic market. In the process, they turned the country into the factory of the world and a global supply chain hub.
But the ongoing trade war between the United States and China and the COVID-19 pandemic have highlighted the vulnerability of complex global supply chains to ongoing structural changes in the global economy resulting from rising labour costs, automation, protectionism and geopolitical tensions. These developments have prompted a critical re-evaluation of existing approaches to global sourcing and manufacturing activities to increase supply chain resilience and reduce external risks.
The extensive supply chain linkages China has developed with partner countries can be seen in both its backward and forward global value chain (GVC) linkages. Backward linkages are the share of foreign value added in China’s gross exports. Forward linkages are the share of domestic value added in the gross exports of the foreign exporting country. China’s backward GVC linkages with most regions experienced a gradual decline between 2005 and 2015, while its forward GVC linkages rose during the same period. This reflects a shift in China’s trade patterns away from processing trade and towards higher value-added activities that enhance its ability to engage in industrial upgrading and climb the value chain.
It is not yet clear how the trade war and pandemic have affected China-centred supply chains, but there is preliminary evidence that the impact has not been uniform across industries. Instead, the coping strategies of firms and industries may be heavily dependent on their relative ease of adjusting to external changes.
To be sure, the pressures on supply chain adjustments, especially those generated by the Fourth Industrial Revolution, predate the trade war and the pandemic. The scale and velocity of the recent global shocks have accelerated existing trends, forcing firms to react more swiftly and efficiently to abrupt changes in the global political and economic climate in order to weather the storm.
An important factor for China’s swift recovery from the pandemic is its integration in value chains in the Asia Pacific. Compared to other regions, the Asia Pacific has retained its importance for China’s global supply chains, with China’s backward and forward GVC linkages with APEC countries reaching over 11 per cent by 2015.
China became closely integrated with ASEAN after the signing of the ASEAN–China Free Trade Area in 2001. Its aggressive pursuit of regional initiatives such as the Belt and Road Initiative may have further increased its appeal as a trade and investment partner for regional economies. Deepening regional supply chain integration may have cushioned the impact of a major global crisis, even if it impedes allocative efficiency and limits the ability of firms to adjust to shocks originating from a specific country or region.
In view of the uncertainties generated by recent developments, what can be done to ensure the smooth functioning of supply chains and increase their ability to withstand the impact of future global crises?
Companies have already started searching for strategies that will allow them to balance the priority of improving operational efficiency against the need for contingency planning. In addition to accelerating the pace of new technology adoption, many have more actively sought to cultivate alternate sourcing, manufacturing, and transportation options and to prioritise the localisation and regionalisation of supply chain relationships.
Some have resorted to reshoring, near-shoring or the China+1 strategy to diversify sourcing alternatives and mitigate the risks of supply chain disruptions. The China+1 strategy has emerged as an attractive option for multinationals based in China as it allows them to maintain their existing business ties with China while hedging against pressures to decouple from the centre of the world’s manufacturing activities.
But policy also has an important role to play in ensuring supply chain resilience. With global shocks and rising protectionist pressures in major economies threatening global supply chains, it is important that governments are sensitive to diversified firm characteristics, preferences and demands, and that they adopt complementary policies to harness market forces.
It is more critical than ever that governments refrain from pursuing…
China
New Report from Dezan Shira & Associates: China Takes the Lead in Emerging Asia Manufacturing Index 2024
China has been the world’s largest manufacturer for 14 years, producing one-third of global manufacturing output. In the Emerging Asia Manufacturing Index 2024, China ranks highest among eight emerging countries in the region. Challenges for these countries include global demand disparities affecting industrial output and export orders.
Known as the “World’s Factory”, China has held the title of the world’s largest manufacturer for 14 consecutive years, starting from 2010. Its factories churn out approximately one-third of the global manufacturing output, a testament to its industrial might and capacity.
China’s dominant role as the world’s sole manufacturing power is reaffirmed in Dezan Shira & Associates’ Emerging Asia Manufacturing Index 2024 report (“EAMI 2024”), in which China secures the top spot among eight emerging countries in the Asia-Pacific region. The other seven economies are India, Indonesia, Malaysia, the Philippines, Thailand, Vietnam, and Bangladesh.
The EAMI 2024 aims to assess the potential of these eight economies, navigate the risks, and pinpoint specific factors affecting the manufacturing landscape.
In this article, we delve into the key findings of the EAMI 2024 report and navigate China’s advantages and disadvantages in the manufacturing sector, placing them within the Asia-Pacific comparative context.
Emerging Asia countries face various challenges, especially in the current phase of increased volatility, uncertainty, complexity, and ambiguity (VUCA). One notable challenge is the impact of global demand disparities on the manufacturing sector, affecting industrial output and export orders.
This article is republished from China Briefing. Read the rest of the original article.
China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at china@dezshira.com.
China
Is journalist Vicky Xu preparing to return to China?
Chinese social media influencers have recently claimed that prominent Chinese-born Australian journalist Vicky Xu had posted a message saying she planned to return to China.
There is no evidence for this. The source did not provide evidence to support the claim, and Xu herself later confirmed to AFCL that she has no such plans.
Currently working as an analyst at the Australian Strategic Policy Institute, or ASPI, Xu has previously written for both the Australian Broadcasting Corporation, or ABC, and The New York Times.
A Chinese language netizen on X initially claimed on March 31 that the changing geopolitical relations between Sydney and Beijing had caused Xu to become an expendable asset and that she had posted a message expressing a strong desire to return to China. An illegible, blurred photo of the supposed message accompanied the post.
This claim was retweeted by a widely followed influencer on the popular Chinese social media site Weibo one day later, who additionally commented that Xu was a “traitor” who had been abandoned by Australian media.
Following the publication of an ASPI article in 2021 which exposed forced labor conditions in Xinjiang co-authored by Xu, the journalist was labeled “morally bankrupt” and “anti-China” by the Chinese state owned media outlet Global Times and subjected to an influx of threatening messages and digital abuse, eventually forcing her to temporarily close several of her social media accounts.
AFCL found that neither Xu’s active X nor LinkedIn account has any mention of her supposed return to China, and received the following response from Xu herself about the rumor:
“I can confirm that I don’t have plans to go back to China. I think if I do go back I’ll most definitely be detained or imprisoned – so the only career I’ll be having is probably going to be prison labor or something like that, which wouldn’t be ideal.”
Neither a keyword search nor reverse image search on the photo attached to the original X post turned up any text from Xu supporting the netizens’ claims.
Translated by Shen Ke. Edited by Shen Ke and Malcolm Foster.
Asia Fact Check Lab (AFCL) was established to counter disinformation in today’s complex media environment. We publish fact-checks, media-watches and in-depth reports that aim to sharpen and deepen our readers’ understanding of current affairs and public issues. If you like our content, you can also follow us on Facebook, Instagram and X.
Read the rest of this article here >>> Is journalist Vicky Xu preparing to return to China?
China
Guide for Foreign Residents: Obtaining a Certificate of No Criminal Record in China
Foreign residents in China can request a criminal record check from their local security bureau. This certificate may be required for visa applications or job opportunities. Requirements and procedures vary by city. In Shanghai, foreigners must have lived there for 180 days with a valid visa to obtain the certificate.
Foreign residents living in China can request a criminal record check from the local security bureau in the city in which they have lived for at least 180 days. Certificates of no criminal record may be required for people leaving China, or those who are starting a new position in China and applying for a new visa or residence permit. Taking Shanghai as an example, we outline the requirements for obtaining a China criminal record check.
Securing a Certificate of No Criminal Record, often referred to as a criminal record or criminal background check, is a crucial step for various employment opportunities, as well as visa applications and residency permits in China. Nevertheless, navigating the process can be a daunting task due to bureaucratic procedures and language barriers.
In this article, we use Shanghai as an example to explore the essential information and steps required to successfully obtain a no-criminal record check. Requirements and procedures may differ in other cities and counties in China.
Note that foreigners who are not currently living in China and need a criminal record check to apply for a Chinese visa must obtain the certificate from their country of residence or nationality, and have it notarized by a Chinese embassy or consulate in that country.
Foreigners who have a valid residence permit and have lived in Shanghai for at least 180 days can request a criminal record check in the city. This means that the applicant will also need to currently have a work, study, or other form of visa or stay permit that allows them to live in China long-term.
If a foreigner has lived in another part of China and is planning to or has recently moved to Shanghai, they will need to request a criminal record check in the place where they previously spent at least 180 days.
There are two steps to obtaining a criminal record certificate in Shanghai: requesting the criminal record check from the Public Security Bureau (PSB) and getting the resulting Certificate of No Criminal Record notarized by an authorized notary agency.
This article is republished from China Briefing. Read the rest of the original article.
China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at china@dezshira.com.
- New Report from Dezan Shira & Associates: China Takes the Lead in Emerging Asia Manufacturing Index 2024
- Is journalist Vicky Xu preparing to return to China?
- Guide for Foreign Residents: Obtaining a Certificate of No Criminal Record in China
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