Export controls are central in economic competition between the U.S. and China. A new U.S.-led multilateral export control regime could further entrench efforts to exclude China from accessing Western technology.

Washington wants to build a “small chip world” for itself that is decoupled from global supply chains. This is pure fantasy. The act can neither help the U.S. achieve a secure supply chain nor rejuvenate its domestic chip manufacturing sector. And it won’t slow China down either.

China’s economy has weather the pandemic as well as any other nation’s has in the last few years, but the future seems uncertain as the world order is reshuffled as borders and regulations return to pre-outbreak norms.

China’s fundamentals are resilient and robust, and the trend points to normalcy and growth. Trade is up, inflation has been controlled, and while the U.S. Fed’s rate hike pushed many currencies down, the Chinese yuan has remained stable.

Neither China nor the U.S. wants to see a humanitarian crisis brought by famine in developing nations. At the UN General Assembly in September, President Xi Jinping listed food security among eight key areas for China-U.S. cooperation. There is much that the major powers can do.

Geopolitical risk, sanctions, and covid in China are redefining how we think about the future of global supply chains. Nations must start considering how to better secure their supply chains through regional trade partnerships, reshoring essential manufacturing capabilities, and sourcing goods from multiple nations and regions.

A robust semiconductor supply chain without China is out of question, while complimentary China-U.S. cooperation would make the global supply chain both complete and resilient for years to come.

Vietnam and India still have a long way to go to compete with China. Control of the pandemic, selective resumption of production and continued strengthening of its supply chains globally will keep China on top for some time.

The current lockdowns in China have the potential for substantial disruptions of supply chains and business on a global scale.

Globalization is going to continue, but some rules and practices may need to be adjusted. The world should be open to such adjustments but continue to oppose economic nationalism and trade protectionism.