Following China’s 20th Communist Party Congress in October ’22, the West has been left with questions about China’s future intentions and how this affects manufacturers with a Chinese supply chain. We all remember how the Covid lockdown in China around March 2020 severely disrupted supply chains, so what if this occurs again (as is a risk with the continuing zero-covid strategy they’re following)? What if China’s political relations with Western countries break down? What if there’s a war involving China? One solution to reduce supply chain risks involving China is to remove China from your supply chain completely, but how realistic or possible is this? Renaud and Adrian investigate here.
Listen: Pursuing A ’Zero China’ Supply Chain.
Watch: On YouTube
- 00:00 – Greetings and introducing the topic: Zero China.
- 01:52 – What is Zero China?
- 03:14 – Looking back in history at the origins of the ‘China + 1’ approach.
- 04:57 – Garment companies: early adopters of a diversified supply chain.
- 07:34 – After 2015 politics started changing in China…spurring businesses to adopt China+1/many policies.
- 18:29 – Looking at Apple as an example.
- 27:46 – How about SMEs with manufacturing in China? What options do they have now?
- 35:32 – How about pursuing Zero-China?
- 43:51 – Should Western companies with Chinese supply chains right now be panicking?
- 48:02 – Wrapping up.
- Japanese companies explore how to go ‘zero-China’ amid tensions [Nikkei Asia article]
- The end of Apple’s affair with China [Economist article]
- Globalism 2.0: North American Importers To Move Supply Chains Out Of China Soon?
- Chinese Communism with North Korean Characteristics and “ZERO-China”
- Interested in sourcing components or suppliers in Vietnam, India, or elsewhere in Asia, but unsure where to start? Sofeast can help you.
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