Asia’s Shifting Role in Global Supply Chains — Perspectives by ANDAMAN PARTNERS Co-Founder Rachel Wu

ANDAMAN PARTNERS Co-Founder Rachel Wu shares perspectives on Asia’s changing role and the new patterns in global supply chains that are unfolding — and how business leaders and companies must adapt to these new circumstances.

Asia has become very prominent in global supply chains over the past 30 to 40 years. China, in particular, is a very special case; the country provides a very broad range of supplies to the world. But China is moving away from labour-intensive industries to high-tech and value-added sectors. It effectively competes with developed countries like the U.S., Germany, Japan and South Korea in the area of high-end manufacturing but also with developing countries across Asia and the world in the area of low- to medium-end manufacturing.

We all know the saying ‘Made in China.’ Then, it became ‘Well Made in China,’ and now the saying is ‘Intelligent Manufacturing in China.’ While the manufacturing base for light industries is gradually moving to Southeast Asia, India, Eastern Europe and Mexico, China is increasingly investing its R&D budget in sophisticated computing, communications, machinery and clean energy sectors.

Companies worldwide need to think differently about China and Asia’s changing role. For sectors from which China has withdrawn, do you have alternative supply chains set up? For sectors China is busy withdrawing from but still dominating, do you have strategies for alternative supply market selection and supplier development? For sectors that China is moving into but not yet dominating, do you have enough insights to understand how to leverage the opportunities from an early stage?

See the full video below for more analysis by ANDAMAN PARTNERS Co-Founder Rachel Wu.