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Beijing [China]April 17 (ANI): New supply chains and markets may emerge in the world, especially when the geoeconomic order is changing and facing challenges, Valerio Fabbri writes in Portal Plus.
The U.S.-China trade dispute and sanctions against Russia since 2014, in the context of invasion crimes and the most recent Ukrainian invasion in February 2022, have disrupted existing global industrial supply chains and opened up the possibility of new supplies emerging Chain stores involved in emerging markets such as India.
In the emerging new geopolitical order, China and Russia have to draw closer economic ties and seek complementarity after their activities in the Indo-Pacific and Europe have become increasingly alienated and marginalized.
The problem has come to the fore amid growing frustration with the China-centric supply chain, not only because it has failed to deliver during the Covid-19 pandemic, but also because of Beijing’s push for human rights and democracy, Portal Plus reports. bad record.
Read also | A U.S. Navy ship sails through the Taiwan Strait after China concluded military exercises.
The paper entitled “Characteristics and Prospects of Sino-Russian Trade Cooperation from the Perspective of the Global Industrial Chain” was released on November 19, 2018 on the social media accounts of the Institute of Economics and Politics of the Chinese Academy of Social Sciences and the Global Strategic Think Tank. end of March.
The co-authored paper pointed out that China and Russia face triple challenges, one is the impact of the epidemic, the other is geopolitical conflict, and the third is global environmental policy, which provides opportunities for trade cooperation between Beijing and Moscow.
Contrary to exaggerating their complementarity, this new finding does have limitations. This is because the claims in the CASS paper fail to recognize the nature of the two economies and the various asymmetries in their product lines and export baskets, other than strategic considerations.
The article believes that China is in the middle and lower reaches of the global value chain, and its exports contain a certain amount of foreign added value, while Russia mainly exports raw materials such as oil and wood in the upper reaches of the value chain. According to Portal Plus, part of its added value is included in the exports of downstream countries. middle.
China may benefit from Russian raw materials including oil, but Russia does not have the diversified intermediate products that China is interested in, such as microchips, which are very important to its electronics industry, because Beijing is trying to move from low-end to high-end in the global supply chain Expand the scale of high-end technology products. Russia is powerless even in areas such as artificial intelligence (AI) and 5G, areas where China intends to dominate global supply chains in the future.
Russia and China are discussing strengthening their economic complementarity as it suits them strategically and helps them withstand a volatile geopolitical environment. But they realize that their economic complementarity is not enough to alter the geopolitical and geoeconomic matrix, and together they pose a growing threat to global supply chains that could eventually lead to wars that could wreak havoc in the West.
Economic sanctions, protectionism and the diversion of precious resources to war are huge threats to the global economy and supply chains. Neither China, Russia nor the West can make up for economic losses by seeking new complementary and closed-loop trade. The authors recommend using this time to restore free trade and divert resources from war to sustainable development, green technology, and built infrastructure, areas where all stakeholders in global power have utterly failed, according to the Portal Plus report. (Arnie)
(This is an unedited and auto-generated story from a Syndicated News feed, the content body may not have been modified or edited by LatestLY staff)
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