The Transmission of Global Supply Chain Disruption to Inflation in China
DOI:
https://doi.org/10.54097/8h89tf56Keywords:
Global supply chain disruption; inflation in China; COVID-19.Abstract
In the tide of globalization, the global supply chain acts as a bond connecting countries. It can not only break through the limitations of resource endowment but also promote the development of international trade. However, the special situation of the COVID-19 pandemic has severely hit the global supply chain. The transportation of raw materials needed for production in many countries has been blocked, and the supply has sharply decreased. This chain reaction has a strong impact on China and even the world. It has pushed up production costs and led to a sharp increase in domestic inflation. This study takes the medical equipment and electronic equipment industries, which have complex supply chains, as samples to deeply analyze the impact transmission mechanism of the pandemic on the global supply chain. The research finds that the disruption of the global supply chain will significantly increase China's inflationary pressure. In addition, we will also compare and analyze the common characteristics of these two industries and provide practical solutions for enterprises and governments based on the analysis.
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