Liu Zhibiao: The Epidemic Will Cause Strategic Contraction for the Global Industrial Chain’s Division of Labor——Four Issues on the Epidemic and Economic Globalization

Release time:2020-04-09Author: Liu Zhibiao

1. What shock and impact does the coronavirus epidemic have on global and China’s supply chains?The influence of the epidemic on global industrial and supply chains where China is situated mainly lies in three aspects. Firstly, the hindrance of import products affects the domestic industrial chain. Secondly, the shrinking international market leads to the obstruction of export. The third is the restructuring changes of the global industrial chain during and after the epidemic.2. How can the government help micro, small and medium-sized enterprises (MSMEs) to resume work and production, so as to maintain the stability of the supply chain? What should the companies do to deal with the supply chain’s disruption?The government can adopt some aid policies in macro, industrial and micro aspects to stabilize the economy. The former one focuses on creating a more relaxed economic environment, which is featured by universality and generality. And the latter two should emphasize the specificity and accuracy for individuals.3. What changes will take place in the global industrial and supply chain?After the epidemic, the world will face the tendencies of multinational enterprises’ strategic contraction on its global front, the reduction of policy resources for maintaining globalization, and the introversion of domestic people.4. What’s the role of promoting the integration of the Yangtze River Delta?In terms of regional economic development, it is an important strategic thought and operational means for China to cope with the possible anti-globalization trend. As for medium-term and long-term policies, it’s conducive to accelerating the construction of global value chain dominated by China.