KCCI's 'CEO Insights' Debut: "Reshoring Requires Business-Friendly Environment"

Andrew Gilholm, Regional Director of Northeast Asia Risk Analysis at Control Risks

[Asia Economy Reporter Changhwan Lee] The Korea Chamber of Commerce and Industry (KCCI) announced on the 10th that it will release the first episode of the "KCCI CEO Insights" online.

"KCCI CEO Insights" is a talk show-style dialogue program that presents insights and analyses from experts in various fields to domestic CEOs, aiming to explore crisis management strategies and new growth momentum in the post-COVID-19 era.

In the first episode, Andrew Gilholm, Managing Director of Northeast Asia Risk Analysis at Control Risks, a global consulting group specializing in crisis management and international affairs analysis, discussed in depth "The US-China Economic Conflict and the Restructuring of Global Supply Chains."

Regarding the "US-China economic conflict," Managing Director Gilholm stated, "The recent escalation of tensions between the US and China began as China emerged as a current hegemonic competitor rather than a future one from the US perspective. Since the COVID-19 pandemic, the situation has rapidly deteriorated, deepening conflicts not only in economic areas such as trade relations and technological competition but also in political fields like the Hong Kong human rights issue."

He added, "Although the two countries signed the first phase trade agreement last January, China has not implemented the agreed terms as quickly as expected due to the pandemic. President Trump, criticized for not taking a tougher stance on China, is facing a difficult dilemma. However, with the US presidential election scheduled for November this year, it is unlikely that the Trump administration will easily terminate the trade agreement, which is considered one of its greatest economic and diplomatic achievements."

He continued, "South Korea is caught between the US and China, so Korean companies are directly and indirectly affected by the US-China conflict. It would be advantageous for the Korean government to maintain balance and adopt flexible diplomatic and trade policies depending on individual situations," advising increased cooperation with neighboring countries, multilateralism, and utilization of international organizations as means to maintain balance.

Regarding "reshoring," the practice of bringing overseas businesses back to the home country, Managing Director Gilholm said, "Changes in value chains and supply chains have been underway for a long time, but the US-China trade war and COVID-19 have ushered in a new phase. Since the fundamental principles of overseas market entry, global production, and supply chains remain valid, it is premature to say that existing trends have completely changed."

He also noted, "Companies will naturally move where profits are, and the final investment decision rests with them. Post-COVID-19, companies need to formulate future strategies considering not only costs but also supply chain security, political risks, pandemics, and natural disasters."

Managing Director Gilholm further stated, "Although the trend of 'de-Chinafication' seems feasible immediately, in reality, it is difficult to give up China, which is a huge market and production base. Reshoring can be both a crisis and an opportunity for companies and governments. South Korea has long experienced reshoring and relocation due to its geopolitical characteristics of competing with China and Japan, putting it ahead of other countries in this regard."

He emphasized, "Amid rapidly changing external environments such as the restructuring of global supply chains, Korean companies should focus on enhancing flexibility and resilience to change. The Korean government also needs to establish policies that secure long-term cooperation and competitiveness for companies and create a business-friendly environment to successfully induce reshoring."

The dialogue with Managing Director Andrew Gilholm will be available for viewing from 10 a.m. on the 11th through the "Online Seminar" section on the KCCI website.

A KCCI official said, "Although uncertainty in the business environment has increased since the COVID-19 outbreak, there are few opportunities for companies to obtain the latest information or gain insights for management strategies. KCCI plans to assist member companies in formulating strategies to overcome post-COVID-19 crises by providing the latest management trends and expert analyses through CEO Insights and online management concerts."

This content was produced with the assistance of AI translation services.