The trade ministers of India, Japan and Australia held a trilateral videoconference on the 27th and decided to formally launch the Trilateral Supply Chain Recovery Initiative to strengthen a resilient and secure supply chain to offset the influence of the Chinese Communist Party in the supply chain of the Indo-Pacific region.
According to a statement by the three countries, the meeting was hosted by Indian Commerce and Industry Minister Piyush Goyal, Australian Trade Minister Dan Tehan and Japanese Minister of Economy, Trade and Industry Hiroshi Kajiyama, according to Taiwan’s Central News Agency. After meeting in September last year to discuss ensuring a secure and resilient supply chain, they met again yesterday and decided to officially launch the Trilateral Supply Chain Recovery Initiative.
According to the statement, the three ministers noted the importance of risk management and continuity plans to avoid supply chain disruptions and reaffirmed their commitment to strengthening resilient supply chains. Through the Trilateral Supply Chain Recovery Initiative, the three countries will strengthen the use of digital technology to support trade and investment diversification. In the initial phase, the initiative will focus on sharing best practices on resilient supply chains, holding events to promote matchmaking between investment and trade, and providing opportunities for stakeholders to explore the possibilities of supply chain diversification.
The three ministers decided to meet at least once a year on this topic to provide guidelines for the implementation of the Trilateral Supply Chain Resilience Initiative (SCRI) and to consult on how to develop the SCRI.
In addition, the statement noted that the ministers recognized that the epidemic has revealed the vulnerability of global and regional supply chains.
As the risks of supply chain concentration in China have become increasingly evident due to the U.S.-China technology decoupling and the shortage of medical supplies caused by the CCP virus outbreak, several of the world’s leading democracies have begun to seek to restructure their supply chains to build a more secure, diverse and resilient supply chain.
The four members of the Quadrilateral Security Dialogue are actively promoting cooperation and supply chain restructuring in manufacturing, technology, infrastructure, information and communications, and health, and some are seeking the participation of Taiwan, which controls key parts of the supply chain.
In addition, the EU is also developing a new strategy to establish its own mining industry to ensure open and unrestricted trade in raw materials. The EU proposes that member states implement mining and processing projects in their respective countries that can be launched by 2025 to promote diversification of raw material sources. And reduce dependence on international supply chains through recycling of resources.
In addition, the U.S. will cooperate with Japan, South Korea, Taiwan and Australia to create an industrial chain of chips, batteries and other important parts, hoping to accelerate the overdependence on Chinese-made chips and other strategic materials supply chain.