Under US restrictions China wants to diversify its supply chain
Under US restrictions China wants to diversify its supply chain

Chinese President Xi Jinping has called for an independent and manageable supply chain. To ensure industrial and national security, while the United States does trade, China has been isolated from its major export products.

In his speech on China's economic development, Xi Jinping said, "We should strive to provide at least one alternative source for our major products and delivery channels. It is necessary to establish an industrial protection system."

The Chinese president also said: The effects of the coronavirus outbreak have revealed hidden risks in the Chinese supply chain and industry without a detailed introduction, which means that there must be an independent, safe, reliable and controllable chain.

Last week, Beijing unveiled a strategy for greater self-sufficiency, which was proposed when its five-year economic plan was announced after a full meeting of key leaders and escalated tension with the United States.

The United States is calling on its allies to avoid buying devices from Huawei, ban dozens of major Chinese tech companies from purchasing US coins, and ban BytesDance from TikTok and Tencent from WeChat.

The first details of the five-year plan emphasized the need for sustainable growth and promised to develop a strong internal market.

Officials did not say what rate of growth they were targeting during this period, but said that the National Development and Reform Commission will develop guidelines to present to the country's parliament in March.

Xi Jinping's speech called for enhancing China's advantages. China's strong position in the international industrial chain could prevent foreigners from stopping supplies.

He also called on China to strengthen its global leadership position in the digital economy and actively participate in drafting international rules for digital currencies and digital taxes in order to create new competitive advantages.

Xi Jinping highlighted the role of state-owned enterprises, which are at the heart of the trade negotiations with the United States, describing them as important pillars and support for national renewal and party government.

He said: SOEs must become stronger, better and bigger, but they also need reforms without specifying their nature.

The speech also included expanding domestic demand, improving urbanization strategies, improving technological resources, and prioritizing the environment and public health.

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