Tradewinds

The Impact of Chinese Globalization

The next ten years will see a seismic shift in the balance of power in global supply chains, predicts John Manners-Bell, CEO of Transport Intelligence.

Chinese manufacturers are fast developing from low-cost suppliers of cheap goods for foreign OEMs into global brands in their own right.

This has major implications for the associated logistics market. Bringing a Chinese brand to Western consumers will mean that these companies will be increasingly taking control of their supply chains. They will establish distribution networks in North America and Europe and in some cases have already done so.

Moreover, there are deeper reaching consequences for the structure of the global logistics industry. There is no reason that the trend of globalization of Chinese companies should be reserved to manufacturers. As their supply chains spread throughout the world, there would be a natural inclination for exporters to use Chinese logistics providers to facilitate their growth.

The global logistics market could look very different in the coming years with the possibility that Asian providers emerge as the dominant force.

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