Global supply chain on which USA want cooperation of India against China

On the second day of PM Narendra Modi’s US state visit, he will meet US President Joe Biden. During their meeting, discussions will be held on how to promote greater economic cooperation between the two countries. Along with this, both the countries can take a decision on working together to create a strong supply chain. Because of this, once again the global supply chain has come into the limelight and along with it China’s increased participation or interference in this supply chain. Let us know what is this global supply chain and why is America worried about China’s big involvement in it?

What is Global Supply Chain
A global supply chain is a type of global network that organizations use to manufacture products and services. This network can be spread over many countries so that necessary supplies can be made for the products and services. Information, resources, processes, etc. flow around the world in many global supply chains.

It has many advantages
From this point of view, the cost of production can be reduced by cheap technology, resources, etc. in this system and expansion can be done by going to new markets. For example, if a company uses raw material from India, produces it in Europe and sends it to Africa, then its supply chain is global.

Global Supply Chain and China
In the last several decades, especially in the last four to five decades, China has become a major part of the global supply chain. The reason for this was the development of infrastructure for cheap labor and rapid manufacturing, due to which many of the world’s, especially big companies, established their production centers in China. Along with this, ports, cargo ships have also been made so that there is no problem in supply. In such a situation, the dependence of the business of western countries including America on China started increasing.

In the last few decades, China’s interference in the global supply chain has increased a lot. (Representational photo: Wikimedia Commons)

China and America
For the last several decades, the relations between China and America are becoming full of tension. Whether it is the issue of Taiwan or human rights in China or the allegation of copying or stealing technology from America. But it is also true that during this time China’s participation in the growing global supply chain kept increasing and companies kept turning to China for their profits. In such a situation, if the global supply chain gets stalled due to any reason, then the western countries will suffer a lot.

Read also: Why is PM Modi’s visit more special than ever for America?

Need to end dependence on China
In such a situation, America now wants to end China’s dominance in the global supply chain by ending the dependence of its businesses on China. America has promoted the policy of China Plus One for its company that the company should start its production in any country other than China. In other countries, India can be a very strong contender. India itself also wants to move forward in the global supply chain.

Taiwan is also a big factor in the US global supply chain. (Representational photo: Wikimedia Commons)

and taiwan also an issue
The dispute between China and America regarding Taiwan is in a way only about the supremacy of the supply chain. If China takes possession of Taiwan, which plays the biggest role in the manufacture of semiconductors, then China can leave America far behind in trade. For this reason, America opposes every effort of China to occupy Taiwan. But to break the supremacy of China, an alternative would be needed in the supply chain, which could be India.

Read also: Why are young people leaving high paying jobs in China to become waiters?

In this context, China also wants to maintain the current supply chain. Given the political uncertainty, India is a good candidate as an alternative to China. Here the experience of Kovid-19 has also forced the world, especially the western industrial countries, to think that they should reduce China’s dominance in the global supply chain and reduce dependence on it. It remains to be seen whether India and America’s jugalbandi can blossom here.

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Tags: China, Economy, India, Joe Biden, Pm narendra modi, Research, USA, World