China bemoans supply chain ‘de-risking’ as foreign investment drops to historic lows

Quality assurance, iMac production, China (Image via Apple’s Supplier Responsibility 2020 Progress Report)
As a growing number of sovereign nations voice concern at how much their supply chains depend on China, the Chinese Communist Party wants to strengthen supply chains with all countries, Premier Li Qiang said on Tuesday.
Eduardo Baptista and Joe Cash for Reuters:
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Li’s comments comes amid calls over the past year from the United States and the European Union to reduce their dependence on China in certain sectors and “de-risk” their supply chains, as well as efforts to cut off Chinese enterprises from some advanced semiconductors.
“We are willing to build closer production and industrial supply chain partnerships with all countries,” Li told the first China International Supply Chain Expo (CISCE), adding that the international community needs to be “more wary of the challenges and risks brought about by protectionism and uncontrolled globalisation.”
Recent geopolitical tensions, from Russia’s war in Ukraine to concerns over a future Chinese invasion of Taiwan, have led a growing number of foreign businesses to opt against expanding their supply chains in China, instead directing investment to countries including India, Mexico and Vietnam that enjoy better ties with the United States, a strategy known as China-plus-one.
The expo, organised by the state-run China Council for the Promotion of International Trade (CCPIT), is Beijing’s latest bid to increase foreign investment in China, which has dropped to historic lows.
The value of announced U.S. and European greenfield investment into China dropped to less than $20 billion last year, from a peak of $120 billion in 2018, according to Rhodium Group, while investment into India shot up by some $65 billion or 400% between 2021 and 2022.

MacDailyNews Take: Li sounds worried. Good.
You made your bed, CCP. Lie in it. And, while you’re at it, stop taking advantage of countries’ largess to steal IP, you criminals.
The CCP’s lunacy is India’s gain. – MacDailyNews, March 3, 2023

The time to accelerate plans to move production out of China was November 9th 2016, but, hey, six years late is better than never! – MacDailyNews, December 4, 2022

Smart companies have finally woken up and are working to diversify their supply chains away from, and reduce risky reliance on, CCP-controlled authoritarian China. – MacDailyNews, October 21, 2022

Apple should have been diversifying production long ago to minimize risk, not to mention China’s human rights abuses, authoritarian censorship, and myriad other concerns, including “COVID” lockdowns. – MacDailyNews, June 1, 2022

It’s smart for both Apple and Foxconn to diversify assembly outside of China. There’s no sense having all of your eggs in one basket. — MacDailyNews, April 2, 2019

The real virus is the panic. – MacDailyNews, March 9, 2020
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