Interventionism, Decoupling, and Reshuffle: New Developments in Global Supply Chain Management

Abstract

Developed countries, led by the United States and the European Union, have stepped up security review of supply chains and adopted a series of restrictive policies and protectionist measures to reshape a more secure, sustainable, and risk-controllable supply chain. A key objective of the West's supply chain strategy is to wean their economies off Chinese influence by resorting to discriminatory policies. Supply chain interventionism on national security grounds violates market rules on which the global supply chain is based, and also runs counter to the principles of nondiscrimination and liberalization embedded in the multilateral trade governance architecture. Global supply chain reshuffles will take time and incur huge costs, leaving ample room for Beijing to make necessary adjustments and bolster its position in global supply networks.