What is the "Point Supply Chain" and Why Is It Often Mentioned?
The term “point supply chain” is often used informally to refer to "single-point" or "choke-point" supply chains — meaning:
A critical point in the global supply chain where one country (like China) dominates production or control of key components, materials, or processes.
In simple terms:
-Imagine you're making a phone.
-90% of the screens come from one country.
-If that country stops exporting, the entire phone supply chain halts.
-This creates a single point of failure — and that’s what worries companies and governments alike.
So when experts talk about the "point supply chain," they’re often warning about overdependence on one country or supplier, which makes the whole system fragile — especially in times of:
1. Trade wars
2. Pandemics
3. Natural disasters
4. Political tension
China is that "point" for many industries, which brings us to your next question...
How Did China Become the King of the Supply Chain?
1. Massive Investment in Infrastructure
China built world-class ports, rail, roads, and manufacturing hubs in record time.
Ports like Shanghai and Shenzhen became the busiest in the world.
2. Joined the WTO in 2001
This gave China access to global trade networks.
Western companies rushed in to build factories there for cheap labor and tax breaks.
3. Skilled but Affordable Workforce
China had hundreds of millions of workers — often more disciplined and skilled than other low-wage countries.
Companies could scale production fast and cheap.
4. Full Ecosystem in One Place
You don’t just make a product in China — you make every part of it there.
For example, Shenzhen isn’t just where your phone is assembled — it’s where:
-Chips are made
-Screens are produced
-Batteries are tested
-Packaging is printed
-Shipping is arranged — all within 10–50 km
This supply chain ecosystem is extremely rare — few places on Earth have it.
5. Government Support
China’s government heavily subsidized key industries (steel, solar, EVs, semiconductors).
Made it easy for factories to get land, energy, and loans.
6. The World Outsourced Everything
The West prioritized cost savings over supply chain resilience.
“Why make it yourself when China can do it cheaper?” was the mindset for decades.
The result: concentration of global manufacturing in China.
Why It’s a Big Deal Now?
COVID-19 showed how vulnerable global supply chains are when China shuts down.
Trade wars with the U.S. made people realize, “We can’t depend on one country.”
The world needs to support Trump's tariffs idea and actions which can bring back manufacturing to their countries and avoid revolution caused by lack of jobs and poverty.
Geopolitics — Taiwan tension, tech competition, etc. — are pushing countries to “de-risk” from China.
New Trends-
Companies are now looking at:
-“China +1” strategy (diversify with India, Vietnam, Mexico)
-Onshoring (bring production back home)
-Friendshoring (move supply chains to allied nations)
By Jo Ikeji-Uju.
sappertekinc@gmail.com
https://afriprime.net/Ikeji
*Share your comments positive or negative........
The term “point supply chain” is often used informally to refer to "single-point" or "choke-point" supply chains — meaning:
A critical point in the global supply chain where one country (like China) dominates production or control of key components, materials, or processes.
In simple terms:
-Imagine you're making a phone.
-90% of the screens come from one country.
-If that country stops exporting, the entire phone supply chain halts.
-This creates a single point of failure — and that’s what worries companies and governments alike.
So when experts talk about the "point supply chain," they’re often warning about overdependence on one country or supplier, which makes the whole system fragile — especially in times of:
1. Trade wars
2. Pandemics
3. Natural disasters
4. Political tension
China is that "point" for many industries, which brings us to your next question...
How Did China Become the King of the Supply Chain?
1. Massive Investment in Infrastructure
China built world-class ports, rail, roads, and manufacturing hubs in record time.
Ports like Shanghai and Shenzhen became the busiest in the world.
2. Joined the WTO in 2001
This gave China access to global trade networks.
Western companies rushed in to build factories there for cheap labor and tax breaks.
3. Skilled but Affordable Workforce
China had hundreds of millions of workers — often more disciplined and skilled than other low-wage countries.
Companies could scale production fast and cheap.
4. Full Ecosystem in One Place
You don’t just make a product in China — you make every part of it there.
For example, Shenzhen isn’t just where your phone is assembled — it’s where:
-Chips are made
-Screens are produced
-Batteries are tested
-Packaging is printed
-Shipping is arranged — all within 10–50 km
This supply chain ecosystem is extremely rare — few places on Earth have it.
5. Government Support
China’s government heavily subsidized key industries (steel, solar, EVs, semiconductors).
Made it easy for factories to get land, energy, and loans.
6. The World Outsourced Everything
The West prioritized cost savings over supply chain resilience.
“Why make it yourself when China can do it cheaper?” was the mindset for decades.
The result: concentration of global manufacturing in China.
Why It’s a Big Deal Now?
COVID-19 showed how vulnerable global supply chains are when China shuts down.
Trade wars with the U.S. made people realize, “We can’t depend on one country.”
The world needs to support Trump's tariffs idea and actions which can bring back manufacturing to their countries and avoid revolution caused by lack of jobs and poverty.
Geopolitics — Taiwan tension, tech competition, etc. — are pushing countries to “de-risk” from China.
New Trends-
Companies are now looking at:
-“China +1” strategy (diversify with India, Vietnam, Mexico)
-Onshoring (bring production back home)
-Friendshoring (move supply chains to allied nations)
By Jo Ikeji-Uju.
sappertekinc@gmail.com
https://afriprime.net/Ikeji
*Share your comments positive or negative........
What is the "Point Supply Chain" and Why Is It Often Mentioned?
The term “point supply chain” is often used informally to refer to "single-point" or "choke-point" supply chains — meaning:
A critical point in the global supply chain where one country (like China) dominates production or control of key components, materials, or processes.
In simple terms:
-Imagine you're making a phone.
-90% of the screens come from one country.
-If that country stops exporting, the entire phone supply chain halts.
-This creates a single point of failure — and that’s what worries companies and governments alike.
So when experts talk about the "point supply chain," they’re often warning about overdependence on one country or supplier, which makes the whole system fragile — especially in times of:
1. Trade wars
2. Pandemics
3. Natural disasters
4. Political tension
China is that "point" for many industries, which brings us to your next question...
How Did China Become the King of the Supply Chain?
1. Massive Investment in Infrastructure
China built world-class ports, rail, roads, and manufacturing hubs in record time.
Ports like Shanghai and Shenzhen became the busiest in the world.
2. Joined the WTO in 2001
This gave China access to global trade networks.
Western companies rushed in to build factories there for cheap labor and tax breaks.
3. Skilled but Affordable Workforce
China had hundreds of millions of workers — often more disciplined and skilled than other low-wage countries.
Companies could scale production fast and cheap.
4. Full Ecosystem in One Place
You don’t just make a product in China — you make every part of it there.
For example, Shenzhen isn’t just where your phone is assembled — it’s where:
-Chips are made
-Screens are produced
-Batteries are tested
-Packaging is printed
-Shipping is arranged — all within 10–50 km
This supply chain ecosystem is extremely rare — few places on Earth have it.
5. Government Support
China’s government heavily subsidized key industries (steel, solar, EVs, semiconductors).
Made it easy for factories to get land, energy, and loans.
6. The World Outsourced Everything
The West prioritized cost savings over supply chain resilience.
“Why make it yourself when China can do it cheaper?” was the mindset for decades.
The result: concentration of global manufacturing in China.
Why It’s a Big Deal Now?
COVID-19 showed how vulnerable global supply chains are when China shuts down.
Trade wars with the U.S. made people realize, “We can’t depend on one country.”
The world needs to support Trump's tariffs idea and actions which can bring back manufacturing to their countries and avoid revolution caused by lack of jobs and poverty.
Geopolitics — Taiwan tension, tech competition, etc. — are pushing countries to “de-risk” from China.
New Trends-
Companies are now looking at:
-“China +1” strategy (diversify with India, Vietnam, Mexico)
-Onshoring (bring production back home)
-Friendshoring (move supply chains to allied nations)
By Jo Ikeji-Uju.
sappertekinc@gmail.com
https://afriprime.net/Ikeji
*Share your comments positive or negative........
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