On September 23, 2020, the Center for Strategic and International Studies (CSIS) hosted a virtual event about strengthening global supply chains.
From API, Mr. OYA Shin, Senior Consulting Fellow, participated in this event as a panelist. Alongside Ms. Nazak Nikakhtar (US Department of Commerce, Assistant Secretary for Industry and Analysis), John Murphy (US Chamber of Commerce, Senior Vice President for International Policy), and Moderator Mr. Daniel Runde (Senior Vice President of CSIS), he discussed possible pathways to help build resilience in global supply chains, and which issues in particular we have to be careful about.
Covid-19 has revealed the vulnerability of global supply chains, such as those concerning the production and distribution of medical products and personal protective equipment. In particular, it has brought about an increased awareness of the risk of single sourcing critical goods from China. Based on that shared understanding, the panel discussion expressed the following views:
- It is necessary to analyze the situation for each individual good when considering supply chain problems.
- It is also necessary to consider various methods to deal with this problem, which include increasing stockpiles, strengthening capabilities to increase production, diversification, and reshoring.
- The importance of international cooperation.
- Excessive reshoring based on mercantilism will cause a country to weaken its own economy and will make international cooperation difficult.
The panelists also emphasized the importance of establishing a framework among like-minded countries to restrict export bans during times of emergency.
Further details, including a recording of the event, can be seen on CSIS’ website .