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China Raises Concerns Over Supply Chain Fragmentation as Trade Disputes Intensify

China Warns of Supply Chain Fragmentation as Global Trade Tensions Increase

Global Supply Chain Fragmentation

News: China has warned that rising trade tensions and protectionist policies could lead to greater fragmentation of global supply chains, increasing risks for international trade and manufacturing.

The statement was made by Chinese Vice Premier Ding Xuexiang during the China International Supply Chain Expo in Beijing.

Ding said growing unilateralism and trade restrictions are threatening the stability of global supply chains as major economies seek to reduce dependence on Chinese rare earths. The warning comes after G7 nations announced plans to diversify rare earth imports, while China responded by imposing export controls on two US rare earth producers.

Beijing defended its industrial competitiveness, citing its integrated manufacturing ecosystem and large domestic market. China has also introduced new supply chain security measures, allowing investigations into foreign entities that threaten its supply chain interests, amid mounting concerns over slowing economic growth and weakening domestic demand.