Guo Yan: "Risk Reduction" Threats Global Industry Chain Stability World | Economy | Global
Recently, some politicians in the United States and the West have changed the "decoupling theory" and concocted a "risk-free" argument. The so-called "risk reduction" essentially politicizes and ideologizes economic and trade issues, goes against economic laws, destroys market rules and international economic and trade order, erodes the foundation of global efficient cooperation, threatens the stability of global industrial and supply chains, and brings huge risks to the deeply integrated global economy.
From "decoupling theory" to "de risk", although some American and Western politicians have changed their rhetoric, the underlying purpose has not changed. In Western economics, "de risk" specifically refers to the offside jurisdiction of financial institutions, which has been criticized by institutions such as the United States, the European Union, and the World Bank in the past. The United States forcibly equates China with "risk" in an attempt to smear normal economic relations with China, and its sinister intentions are evident. From the perspective of specific policy directions, the so-called "risk reduction" is still playing old tricks such as technology blockade, investment review, and supply chain transfer, and the real purpose is still to contain and suppress China.
This practice of dividing the world under the guise of "risk reduction" seriously impacts the stability of global industrial and supply chains, hinders global technological progress and economic development. The formation and development of the global supply chain is the result of economic globalization and market economy. Under the tide of economic globalization, strengthening division of labor and cooperation among countries brings about common development. As the world's second-largest economy, China is an important hub in the global industrial and supply chains, as well as a major trading partner for over 140 countries and regions. The United States, under the guise of "de risk", is engaging in decoupling from China, coercing other countries to choose sides between China and the United States. This not only seriously disrupts the normal operation of the global market, but also exacerbates the chaos of the global economic governance system, triggering international rule competition and conflicts, and causing a huge impact on economic globalization.
Not cooperating is the biggest risk. For decades, economic globalization with free trade as its core has led to great prosperity in trade, convenient investment, large mobility of people, and technological development, which has become an irreversible trend in the world today. To achieve the security and resilience of global industrial and supply chains, resource allocation must be based on marketization, diversification, and economic globalization. However, some countries engage in factional confrontation and an "economic cold war", attempting to construct a parallel system that divides the world. They recklessly interfere in the internal affairs of other countries, transfer risks and crises to foreign countries, and periodically harvest world wealth, seriously damaging the fundamental interests of countries around the world and bringing unbearable weight to the long-term development of the world.
Compared to so-called "risk reduction", what the world needs more is "depoliticization". Currently, the global economy is facing increasing downward pressure, weak growth in trade and investment, high debt levels, shortages in food and energy supply, and an unprecedented climate crisis. In the face of increasing instability and uncertainty in the world, all parties have their own security concerns. But generalizing national security as an excuse to promote protectionism and suppress other countries will only cause more problems and increase global economic risks.
History has proved that only by adhering to open cooperation can we obtain more development opportunities and greater development space. All countries should follow the trend, work together to promote more creative cooperation, jointly maintain the stability of the global industrial chain and supply chain, and make more contributions to world development and security.
