{"id":7377,"date":"2025-03-11T16:32:04","date_gmt":"2025-03-11T15:32:04","guid":{"rendered":"https:\/\/www.rivistaeco.com\/?p=7377"},"modified":"2025-03-11T16:32:04","modified_gmt":"2025-03-11T15:32:04","slug":"china-wants-to-go-it-alone","status":"publish","type":"post","link":"https:\/\/www.rivistaeco.com\/en\/2025\/03\/11\/china-wants-to-go-it-alone\/","title":{"rendered":"China Wants to Go It Alone"},"content":{"rendered":"

Supply Chain Openness Index, 1995-2020<\/strong><\/h3>\n
\"\"
Source: TiVA (Trade in Value Added) data – Organisation for Economic Co-operation and Development (OECD).<\/figcaption><\/figure>\n

 <\/p>\n

The chart illustrates the trend of the supply chain openness index at the global level between 1995 and 2020. It does so by distinguishing between the world including China and the world without the Asian giant (represented in purple and orange, respectively).<\/p>\n

This indicator measures the share of foreign inputs used in domestic production processes relative to the total (domestic plus foreign inputs), serving as a measure of the degree of integration into global value chains. The higher the value, the more domestic production relies on foreign supplies for its activities, and consequently, the higher the level of trade and international integration.<\/p>\n

The difference in trends between the two lines highlights China’s role in global supply chains. The world without China has a higher and steadily increasing openness index over time. In other words, global production is becoming more dependent on foreign inputs.<\/p>\n

Conversely, when China is included, the indicator\u2019s value is consistently lower. This is due to the weight of its economy and its lower dependence on foreign inputs compared to other countries. As a very large economy, China produces a significant share of the resources and intermediate goods needed for its production domestically, reducing the need to import components from abroad.<\/p>\n

For example, if we excluded the United States from the calculation, we might observe a similar effect: the U.S. also has strong domestic production that makes it less dependent on foreign inputs compared to smaller economies that are more integrated into global value chains.<\/p>\n

Another key element to consider is that, in addition to having a structurally lower level, the index that includes China has generally declined since 2008. This suggests that the country has further reduced its dependence on foreign supplies. This shift is likely linked to self-sufficiency strategies and reshoring, meaning the process of bringing back to the home country various stages of production that were previously outsourced abroad.<\/p>\n

China\u2019s growing tendency to strengthen its self-sufficiency and reduce dependence on foreign inputs has made it significantly less vulnerable to tariffs compared to the past.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Supply Chain Openness Index, 1995-2020   The chart illustrates the trend of the supply chain openness index at the global level between 1995 and 2020. 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