How big are the challenges facing global supply chains today?

AIIB Chief Economist Eric Bergloff analyzed the multiple challenges facing global supply chains and the future development trends of global value chains.

Eric Bergloff said that in the face of the epidemic, challenges faced by the global supply chain came one after another. The shutdown of China in the early stage of the epidemic only had a very short-term impact. Later, China recovered so quickly that it did not cause any damage to the supply chain. what impact. However, since then, many countries have launched vigorous stimulus policies, which greatly increased the market demand for goods and services, put pressure on the supply side, and eventually overwhelmed the supply chain. So we've seen a huge increase in shipping prices, some containers are stuck and can't reach their destination, etc. All of these problems are largely due to the Covid-19 pandemic. But in fact, the main problem is not that the supply chain is interrupted, but that the global value chain is facing too much demand. Global value chains face many other challenges, such as the challenges of technological change, increased automation, and more, the biggest of which is climate change. The lesson we have learned from the current Russia-Ukraine crisis is that maintaining GVCs is much more difficult than we thought, because GVCs are built on very close relationships that carry a lot of sensitive information. We're going to decarbonize through carbon pricing along the value chain, and I think that's going to be the way of the future.Editor/Ma Xue