Third, the global supply chain layout is accelerating the adjustment, and the trend of diversification, regionalization and localization is obvious.

Global industrial division follows the logic of efficiency first. Under the premise of considering the transaction costs such as transportation and communication, the global value chain is fragmented, and each link is allocated to the region with the most suitable input factor endowment, so as to minimize the cost of final product delivery. This forms a global value chain division pattern in which developed countries engage in R&D design and brand marketing, and developing countries engage in processing and assembly. Although the supply chain occasionally encounters local problems caused by natural disasters, trade conflicts and other reasons under the condition of a high degree of global division of labor, it can generally maintain smooth operation. However, with the large scale and long duration of the epidemic, the impact on the supply chain is more serious and lasting, and the importance of supply chain security has become prominent. Globally distributed supply chains pass through many factories and transport links in many countries, so in the face of the impact of the epidemic, the vulnerability caused by long spatial distances and many links is exposed. Many countries and multinational companies are beginning to reflect on the risks of too concentrated supply chains, and are considering the push to repatriate companies along the supply chain and diversify supply sources.

China is the world’s largest industrial country, and some developed countries and multinational companies are considering cultivating new sources of supply outside of China. However, the diversification and localization of the supply chain are affected by many factors, and the investment is large and lasts a long time. At present, with a complete industrial system and a huge domestic market, China will continue to become a major part of the global production system.

FBM202

The development direction of China’s manufacturing industry in the period of the 14th Five-Year Plan

The development of China’s manufacturing industry faces many challenges, but the ultra-large scale market, the ever-increasing innovation capability, the perfect industrial system and the sound momentum of the vigorous development of the digital economy have provided a solid foundation for China’s manufacturing industry to better cope with new challenges and occupy a favorable position in the global manufacturing pattern adjustment. In the face of complex internal and external situations, it is necessary to further adjust the development direction of China’s manufacturing industry in the global industrial system, which requires both strategic determination and timely response to promote the high-quality development of manufacturing.

On the one hand, we must continue to open wider. The trend of globalization is irreversible, the division of labor within industries and products has developed for decades, and many industrial chains have achieved a high degree of globalization. No country has an advantage in all links of all industrial chains, and only by integrating global resources can we produce the most internationally competitive products. In this regard, we must adhere to the expansion of opening up, be good at coordinating both domestic and international situations, and make good use of both domestic and international markets and resources.

On the other hand, we must insist on self-reliance. It is the economic logic of industrial globalization to give full play to comparative advantages and participate in global division of labor. However, it should also be noted that at present, non-economic factors have increased the impact on the global industrial chain and supply chain. In this regard, we must enhance the security and stability of the industrial chain and supply chain, complete the “short board” of some key links, and forge the “long board” of some key links. Draw lessons from the hollowing out of industries in developed countries, maintain the production, innovation, upgrading capacity and moderate capacity of labor-intensive industries, and strengthen the security guarantee capacity of domestic industrial chain and supply chain.