How to avoid the risk of supply chain broken in the epidemic?

The development and progress of the global industrial chain have never stopped. The reason for the evolution lies in the differences in international division of labor caused by differences in resource allocation among countries.

Since the 1970s, global trade has undergone 50 years of in-depth integration and development, forming a huge global industrial chain system. The economies among countries rely on and influence one another. At the same time, international and domestic industrial chain supply chains are also inseparable. As the “world’s factory”, China is an important part of the global industrial chain.

In recent years, global trade is being reconstructed. Each country continuously adjusts its strategy according to its own trade status. For example, the global industrial chain oriented to the consumer demand of developed countries is adjusting new goals. “Trade in Service” is gradually becoming a new field for transnational trade.

The current epidemic is in an urgent situation. Due to the different stages of the epidemic situation in various countries, the resumption of work in different periods has made the coordination of the global industrial chain supply chain more difficult. It is said that the “broken chain risk” of supply chains in all walks of life in the world is increasing, and the global trade is also accelerating reconstruction in this process.

Supply chain broken is being staged

Overall, the “broken chain risk” of the global supply chain is mainly divided into two stages.

In the first stage, at the beginning of the epidemic, it was mainly China’s production suspension, and the manufacturing industry was greatly affected. The risk of breaking the supply chain in the world was mainly concentrated on the “Supplier”.

In the second stage, the epidemic broke out worldwide. When the economic activities of countries around the world pressed the pause button, all industries in China resumed work and production. At this time, the developed countries’ economy was suspended, and both the demand and supply were affected. At present, countries such as the United States and Europe are still on the left side of the epidemic inflection point. It is difficult to see when the peak will come. So it is difficult to determine how long the negative impact of the epidemic on the global economy will last.

How can companies avoid the risk of supply chain broken?

At present, as China’s epidemic prevention and control situation are superior to foreign countries, socio-economic operations are gradually recovering. As an important part of the global supply chain, the “China Engine” has been restarted and is working hard to promote the global industrial chain to “move on again”

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