From UPSC perspective, the following things are important :
Prelims level : SCRI
Mains level : Paper 2- Making the supply chains resilient
Tackling the supply chain disruption through SCRI
- The Supply Chain Resilience Initiative (SCRI) was formally launched on Tuesday by the Trade Ministers of India, Japan and Australia.
- The three sides agreed that the pandemic revealed supply chain vulnerabilities globally and in the region and noted the importance of risk management and continuity plans in order to avoid supply chain disruptions.
- Some of the joint measures they are considering include supporting the enhanced utilisation of digital technology and trade and investment diversification, which is seen as being aimed at reducing their reliance on China.
How China reacted
- China’s Foreign Ministry on Wednesday described the move as ‘unrealistic’.
- The formation and development of global industrial and supply chains are determined by market forces and companies choices, it said.
- It also said that the artificial industrial ‘transfer’ is an unrealistic approach that goes against the economic laws and can neither solve domestic problems nor do anything good to the stability of the global industrial and supply chains, or to the stable recovery of the world economy.