Tech war: Xi Jinping vows to protect global supply chain as US tensions, Covid-19 controls raise decoupling risks
- The Chinese president made the pledge during a government forum in Hangzhou on Monday, attended by delegates from Qualcomm and Boeing
- While China’s global trade volume remains stable so far, the country faces increased decoupling risks stemming from geopolitical tensions with the US
Chinese President Xi Jinping has pledged to safeguard supply chain security, in a sign of Beijing’s growing concerns over China’s role in the global economy, as the US moves to isolate the world’s second-largest economy from hi-tech sectors such as semiconductors.
The “stability and resilience” of the global supply chain is vital for the world economy, Xi wrote in a congratulatory letter to the International Forum on Resilient and Stable Industrial and Supply Chains on Monday.
The event in Hangzhou, capital of eastern Zhenjiang province, was hosted by China’s industry ministry, economic planning agency, transport ministry, the State Council’s research centre, and the provincial government.
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It marked the first such event by the Chinese government – an idea proposed by Xi in his virtual speech during the Group of 20 leaders summit last October, when China was trying to position itself as a global exemplar in balancing Covid-19 controls and economic growth.
Monday’s event was intended to demonstrate China’s importance in the global supply chain, but it comes as the country’s “dynamic zero-Covid” policy has severely disrupted supply chains since the start of the year, in sharp contrast to other major economies that have moved onto living with the coronavirus.
While there was no public agenda, live coverage or official website for the forum, it was regarded as a high-level event, with Vice-Premier Liu He reading out Xi’s letter via video conferencing, and a number of ministerial-ranking officials, including the Zhejiang Communist Party secretary Yuan Jiajun, delivering speeches.
According to an official readout of the forum published by Zhejiang Daily, the local official newspaper, Argentine President Alberto Fernández also gave a virtual speech.
