Supply chain

Nonagenarian Mochtar Riady, founder of Lippo Group in Indonesia, shared his views on “New Challenges and Opportunities in a Post-Covid-19 World” at a webinar yesterday. He believes that with its combined strength, ASEAN can weather any potential headwinds of deglobalisation. And contrary to what others predict, China’s place in global supply chains is firmly anchored and the country looks set to play a leading role in the Fourth Industrial Revolution.

Vietnam stands to benefit from MNCs’ efforts to diversify their production base beyond China. How much it will actually benefit, however, depends on how fast it can roll out measures to further improve its infrastructure and business environment.

India and China marked 70 years of diplomatic relations with an exchange of letters between the countries’ leaders on 1 April. Other commemorative events were to follow but have been postponed due to the coronavirus. Often mentioned in the same breath as two populous Asian powers on the rise, India and China have seen their fair share of ups and downs as competitors and partners. Apart from derailing the celebratory side of things, how will pressures from the Covid-19 pandemic affect India-China relations?

Under the phase one China-US trade deal signed in January, China has committed to purchasing an additional US$200 billion worth of US products and services. But in the current circumstances, will it be able to meet those commitments? And will US President Donald Trump terminate the deal, or negotiate an interim agreement? Will a new trade war escalate matters into a hot war?

A severely disrupted supply chain, an inevitable blame game, a collision in the East China Sea... Dr Amrita Jash says that like many things this year, the warming up of China-Japan ties has been hijacked by the spread of Covid-19 and its aftermath.

Despite a proposed White House executive order to reduce dependence on China for medical supplies, and a promise by US National Economic Council President Larry Kudlow that the US government will pay for US companies to return home, US companies in China are not biting. Zaobao correspondent Chen Jing speaks to some company leaders to find out why.

Vincent Martin, Food and Agriculture Organisation of the United Nations (FAO) representative in China and North Korea, shares his thoughts on the Chinese government’s efforts to limit the impact of Covid-19 on agriculture and food security in China. He remains sanguine that the country has enough wind in its sails to see it through this tough period and embark firmly on new beginnings.

Zheng Weibin thinks that strategic rivalry between China and the US will only intensify in the wake of the Covid-19 crisis. As the US moves to close off its vulnerabilities in the global supply chain, will Europe do the same and if so, what will the new face of globalisation look like?

After this battle with the Covid-19 coronavirus, each ASEAN country should step up its emergency preparedness and national resilience capacities in dealing with similar pandemics. But health concerns aside, the outbreak also highlights the region’s high reliance on China in economics and trade. As global supply chains realign in the wake of the crisis, Southeast Asian countries should implement bold domestic reforms and vigorously develop their manufacturing sectors to be in the best position to reap the benefits.