A REVIEW: “THE US-CHINA TRADE WAR AND THE GLOBAL SUPPLY CHAIN”
By Dr. Nick Vyas, Executive Director, USC Marshall Center for Global Supply Chain Management
Insightful Commentary by Dr. Nick Vyas
“Data is the new container. In the same way that containerization, introduced in the 1940s, revolutionized logistics, digitalization of supply chain has brought in hitherto unimagined efficiencies.” – Dr. Nick Vyas
Examining the US-China Trade War and its Global Impact
The article dives into the ongoing US-China trade war, scrutinizing its objectives, triggers, and consequences. The focus is on containing China’s economic rise, addressing issues such as Intellectual Property Rights (IPR) violations, forced tech transfers, and policy distortions. Triggers encompass America’s national debt, rising trade deficit, impact on employment and wages, the 2007-2009 recession, and China’s grandstanding. The article highlights a shift in global supply chains, benefiting countries like Vietnam, Thailand, Indonesia, Malaysia, and India. China’s economy, on the other hand, experiences the slowest GDP growth and declining industrial production indicators. A potential global recession is also contemplated.
China’s Pursuit of Digital Supply Chain Dominance
The second part concentrates on China’s efforts to dominate the digital supply chain, underscoring the importance of superior digital infrastructure in global trade. Topics covered include China’s progress in fintech, blockchain technology, 5G deployment, and artificial intelligence. The author speculates that if China builds a superior digital infrastructure, it may control over 65 percent of global trade by 2050.
Implications for the Future of Global Supply Chains
The article concludes by exploring the implications of the ongoing trade war on the future of global supply chains. It raises questions about emerging economic models and stresses the need for sustainability in redesigning global supply chain networks. The focus, according to the author, should be on building smarter and sustainable supply chains benefiting both humanity and the environment.
ERP in the Context of the US-China Trade War
In the context of Enterprise Resource Planning (ERP), the article poses critical questions for businesses, ERP practitioners, researchers, and vendors. Urging reflection when it comes to supply change management: The importance of adaptability and sustainability in ERP strategies is underscored, aligning with the evolving global economic landscape.
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