Apri 21 5, 2021
The high profile Boao Forum for Asia (BFA) would kick off on this Sunday with the theme :
“A World in Change: Join Hands to Strengthen Global Governance and Advance Belt and
Road Initiative (BRI) Cooperation”. In an interview for Xinhua News Agency, Prof. Dr. Tang
Zhimin, Director of CASPIM discussed the related issues of regional cooperation, impacts
of the pandemic and supply adjustment:
Q: Some analysts said with the world economy struggling to escape the economic shock of COVID-19,
there is a trend of increasing regional cooperation and integration among Asian countries. What’s your
comment on the view? In your opinion, what’s the significance of closer cooperation and integration for the
recovery of regional economy as well as the world economy?
A: Regionalization of trade is the trend, as the growth in trade among countries within the region is faster
than than the trade among countries across regions. Reasons: 1) Infrastructure development and digital
platform enhance the capabilities of more regional suppliers; 2) fast reaction by suppliers close to end
customers; 3) change in labor cost and cost of energy and transportation.
Q: After being ravaged by the pandemic for more than one year, do you see any long-lasting impacts the
pandemic have had on Asian economies and Thai economic development? What measures should be taken
to counter these impacts?
A: Digitalization: the way for understanding and catering for customer need and delivering the product and
service; and the organization and operation of business. Government should enhance telecom and logistic
infrastructure and promote ITC technology transfer. A closer cooperation between China and Asian
countries under BRI will be beneficial.
Q: After the pandemic and strict lockdown disrupted global supply chain last year, multinationals have been
trying to adjust their supply chains. Do you see any trend in such adjustments? Or do you have any
projection for the global supply chain shift? What will the shift mean for global economy?
A: From the business perspective, supply chain resilience is fostered through discovering and attachment to
diversified platforms and networks of competitive suppliers. An open trade system is better than
protectionism. Supply chain adjustment should follow the market force and not be used as a political tool. It
is not wise for governments to overact with “trade distorting” blacklist or sanctions in the name of “national
security”. Boao Forum may be a good opportunity for a dialogue among business leaders and policy
makers on such issues.
The effective governance of a country in dealing with a shock like Covid 19 pandemic is also an important
factor for a company to decide where to diversify their supply chain.