China’s Mega Supply Chains

Abstract

This chapter explains the development and significance of China’s mega supply chains and their position in the global division of labour. It explains the importance of modularity, standardization, and complementarity in supply chains. It analyses how efficiencies and resilience are achieved and balanced in supply chains and the importance of platforms, both geographical clusters, such as industrial bases in Shenzhen, Chengdu, and Suzhou, and digital platforms, such as Alibaba and Pinduoduo. The chapter also argues that China’s mega supply chains have become regional hubs supplying intermediate products to manufacturing facilities in countries with lower labour costs. It discusses the extent to which China is progressing towards Industry 4.0, with smart supply chains, and how the country is responding to the challenges from growing global trade tensions.