Logistics and Supply Chain Technology Report 2021

中 国 电 信 ( 欧 洲 ) 有 限 公 司 C h i n a T e l e c o m ( E u r o p e ) L t d .

Logistics and Supply Chain Technology Report 2021

How important is the Chinese market for your supply chain? Centrality of China

50%

100%

0

We have no dealings in China We have facilities in China We have suppliers in China China is a major market

53%

24%

18%

5%

The majority of our respondents told us that China is still a major market for their business. Whilst a substantial portion of businesses we surveyed only relied upon a few suppliers in China (24%), over half placed the region as central to supply chain operations (53%). With a further 18% citing the fact that a number of their own facilities are based in China, and just 5% of all businesses surveyed telling us that they no dealings in China, it is no wonder that disentangling operations has proved difficult. Though relocation to countries such as Vietnam and Thailand has presented an export-friendly solution with a market and supply ecosystem close to China, the desire to build redundancy via relocation has been constrained by supplies available to the region. Those with long and complex value chains have continued to struggle with accelerating component costs over the last 12 months (the semiconductor industry being a notable example). Similarly, the level of specialised production and agglomerated industries within China means that these value chains, though facing a degree of uncertainty, will not be completely undone by recent disturbances.

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