Key Points
- Global supply chains remain a disaster since the COVID-19 pandemic.
- Supply chains in some places of Asia seem to have evolved to the next level.
- South Korea, China, and Japan assume a global role. Indonesia, too expects to join the global electric vehicle market.
The downfall of supply chains across the globe threatens globalization. With the crisis in place, the United States attempts to reign in manufacturing activities once again. Despite the disruptions, supply chains developed for the better within the span of the past two years in some places.
Asian countries accumulated their inventories and diversified products and services during the chaos of the COVID-19 pandemic. They also garnered flawless trade ties to strengthen their supply chains further. Moreover, the persistent and robust supply chains from Asia brought the global importance of giants like China, Japan, and South Korea into focus.
The supply of tech products, capital goods, and machinery between China and South Korea exceeded US$300 billion in the year 2021. According to Bank of American Corp, 2021 showed the highest flow of goods between China and South Korea since their economic agreement of 1992. China’s demand for higher-value products grows daily, and its suppliers seem to adapt accordingly.
Recently, Indonesia reported a 5 billion dollar deal with Tesla to purchase nickel products. Southeast Asia’s largest economy and the world’s biggest nickel producer, Indonesia, hopes to convince Tesla to start an EV production facility within the country. Indonesia attempts to develop electric batteries and vehicles locally and supply its products to the world. If this strategy goes according to plan, Indonesia will become a key EV supplier. Indonesia becoming an EV producer and supplier will further bolster the Asian economy.
The supply chains in Asia continue to grow and expand, and the most robust economies continuously produce high-quality goods. Hence, a more significant number of partners and consumers gather around these suppliers to establish stronger and sturdier trade relationships.
Reference,
https://www.channelnewsasia.com/commentary/us-china-supply-chains-asia-resilient-2951246
