The Covid-19 crisis has been a wake-up call on the vulnerability of the global supply chain. Like much of the developed world, many European Union countries have outsourced labour-intensive manufacturing to Asia, particularly China, over the past 40 years. But the sudden shutdown of economies around the world highlighted the need to reduce dependency on a single country.
Increasing the share of manufacturing in GDP has been part of the E.U.'s strategy for a number of years. In the wake of the pandemic, the European Commission is targeting "strategic autonomy" in key sectors as part of its proposed 750 billion-euro coronavirus recovery package. Some industry leaders in Europe have urged companies to move their supply chains closer to home.
However, given the maturity and complexity of the global supply chain, a widespread exodus of manufacturing from China would be difficult. The higher cost of manufacturing in Europe is also likely to limit reindustrialization in Europe.
The "China Plus One" model could be a solution. This strategy reduces reliance on China by adding another location – such as ASEAN's manufacturing hubs, but could also include locations closer to home.
Will Europe see a wave of reindustrialization post-Covid? What advantages would a return of manufacturing to Europe bring to the continent? Which sectors and countries would be affected? What would this mean for E.U.-China relations?
During this webinar, Louis Delcart, Guest Lecturer of Brussels Diplomatic Academy and Board Member of European Academy of the Regions, along with Gunter Gaublomme, Director of Brussels Diplomatic Academy, will share their insights on the advantages and challenges of moving manufacturing operations to Europe. They will also share their thoughts on global manufacturing trends in a post-pandemic world.
Register now to learn about supply chain choices for Europe and the potential for reindustrialization.