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

Existing Issues

Have you experienced any of the below issues with your supply chain operations in China?

50%

100%

0

Regulatory and legal requirements

53%

Cross-cultural communication

29%

Oversight of operations

28%

Other

24%

Connectivity Issues

15%

* Multiple answers allowed

Despite the reliance upon China, our survey respondents relayed a number of critical issues with their current operations that, were other regions to offer viable solutions, might lead businesses to make dramatic shifts in sourcing and manufacturing. To this point, regulatory considerations were front of mind for our respondents who were concerned about operations. Ensuring compliance with local laws and reducing cross-border costs have been a persistent pain for 53% of our survey respondents, citing regulatory and legal requirements as a pivotal issue facing their supply chain operations in China. Furthermore, not only were 28% of respondents struggling to gain adequate oversight into their operations in China, but cross-cultural communication with Chinese staff was still found to be a sticking point (25%), making it even more difficult to resolve issues (regulatory or otherwise) when they arose. Despite the commitments of tech giants Google and Facebook to laying more subsea cables to connect East Asia and the US, connectivity was another issue raised by a slim portion of respondents (15%). This is also likely due to a more complex regulatory environment around network connections to China that foreign companies are not familiar with. Strong investment in 5G and other communications infrastructure will be better suited to improving resiliency of services for those based in APAC, and yield improvements in this area in the interim.

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