The Dutch government's recent forceful seizure of the overseas assets of the publicly listed Chinese company Wingtech Technology has once again triggered global concerns over the security of multinational corporate supply chains. Under the dual pressures of deglobalization and intensifying geopolitical competition, the global supply chain system that was once driven primarily by the pursuit of profit is undergoing a profound structural transformation. Data show that since 2008, the ratio of global trade volume to GDP has stabilized, reflecting a shift in the internal logic of supply chains from focusing on efficiency to a focus on security and resilience. Particularly after the outbreak of the COVID-19 pandemic in 2020, global supply chains have accelerated their reconfiguration toward regionalization and localization. By 2024, intra-regional trade within the three major economic blocs, i.e., Europe, Asia, and North America, had risen to 56% of total trade, with Europe at 61%, North America at 39%, and Asia at 59%, while inter-bloc trade has shown notably weak growth.
Based on long-term research on globalization, geopolitics, and cross-border production, ANBOUND's founder Kung Chan proposed the concept that "strategic supply chains should become an essential component of national strategy. He argues that once the spatial continuity of multinational production is disrupted, global supply chains are no longer merely corporate-level tools for cost optimization. Instead, they have split into two parallel systems of the strategic supply chain and the corporate supply chain, among which the strategic supply chain will inevitably become an instrument of competition among nations. According to Chan, the corporate supply chain mainly concerns the production of ordinary consumer goods and non-core components, remaining under the autonomous allocation of enterprises based on market demand, with an emphasis on efficiency. In contrast, the strategic supply chain involves sectors critical to national security and industrial lifelines, which must be elevated from "enterprise-led" to "state-controlled", prioritizing security above all else.
Around 2017, the United States formally incorporated supply chain issues into its National Security Strategy. During the first Trump administration, the U.S. Department of Defense released a report titled Assessing and Strengthening the Manufacturing and Defense Industrial Base, in which the term "strategic and critical supply chains" was used for the first time. The report pointed out that America's dependence on foreign, especially Chinese, sources for key raw materials, semiconductors, and pharmaceutical ingredients had already created "strategic vulnerabilities". From that point onward, the concept of the "strategic supply chain" evolved from a corporate-level notion into one of national strategy. In the realm of strategic supply chains, the U.S. primarily emphasizes the three aspects of resilience and independence, national security, and strategic competition.
Unlike corporate supply chains, strategic supply chains are inherently tied to competition among nations and therefore must be managed by the state, hence their designation as "strategic". Their operating logic serves national interests and can be characterized by three main features:
First, there is the state-led management. Because strategic supply chains emphasize higher-level national interests, they have become matters of national importance, managed directly by governments through the establishment of laws, agencies, and dedicated officials. Countries around the world are incorporating strategic supply chains into their top-level planning, shifting from passive response to proactive governance through legislation, institutional design, and regulatory frameworks.
For example, the U.S. has successively introduced the CHIPS and Science Act and the 100-Day Supply Chain Review, explicitly identifying 16 sectors, including semiconductors, new energy batteries, and critical minerals, as part of its "strategic supply chain" framework. It has also established the White House Council on Supply Chain Resilience to directly oversee the layout and adjustment of these supply chains. The European Union has launched a series of initiatives, such as the Critical Raw Materials Act (CRM Act) and the EU Chips Act, setting a goal that by 2030, 40% of key minerals like lithium and rare earths should come from local extraction and recycling. It has also created a supply chain early warning mechanism to monitor and mitigate risks. China, through its "dual circulation" strategy, has strengthened self-sufficiency and control in vital areas such as food security, energy, and semiconductors, incorporating strategic supply chain management into its overall national security framework. In essence, strategic supply chains have already become a major priority for governments worldwide.
The second characteristic is that there is a distributed structure. Unlike traditional industrial chain layouts, strategic supply chains exhibit a distributed configuration, which has become an essential component of international trade. This structural model is closely aligned with ANBOUND's earlier concept of "close produce". Through a carefully designed approach of localizing core segments, diversifying supporting links, and nearshoring regional layouts, countries aim to break dependence on any single nation or region, thereby building a resilient supply chain network that ensures controllable disconnection risks and independent core capabilities while reducing overall costs, including those stemming from geopolitical risks.
Localizing core segments means that the most critical technologies and manufacturing processes within the supply chain must be firmly controlled domestically to avoid potential weakness points that can be constrained by other parties. This involves strengthening domestic policies and technological innovation to create a stabilizing factor for the national supply chain. For example, the European Union, through its Chips Act, plans to invest EUR 43 billion to support local industry development. Diversifying supporting links refers to expanding sources of raw materials and components across multiple regions to disperse geopolitical risks associated with overreliance on any one area. For instance, the U.S. has been building a "de-sinicized" rare earth supply chain by forming strategic alliances with countries such as Japan, Australia, and India. Finally, regional nearshoring serves as a key complement—relocating parts of production to nearby or friendly countries to lower comprehensive costs and enhance supply chain stability.
A survey by Bain & Company shows that 64% of U.S. companies are currently implementing supply chain adjustments such as nearshoring and diversified outsourcing, and these are exactly the measures that align with the country's national strategic direction. For example, in the semiconductor sector, the U.S. is promoting nearshoring by establishing secondary production bases in Mexico and Southeast Asia in addition to domestic facilities, thereby forming a distributed network characterized by "domestic as the core, surrounding regions as support". In summary, based on the principle of close produce, strategic supply chains inherently exhibit a distributed structure.
The third aspect is the focus on strategic industries. Unlike corporate supply chains, strategic supply chains are embedded within national strategic frameworks that are far beyond the ordinary scope of corporate production, supply, and sales. They are implemented through each nation's strategic industries, directly tied to the stability and prosperity of their economies, and can even serve as crucial tools of trade power. For instance, in the semiconductor sector, the U.S. passed the CHIPS and Science Act in August 2022, allocating hundreds of billions of dollars to strengthen its semiconductor R&D, design, and manufacturing capabilities. The European Union, through its European Chips Act, has set a goal to double its global semiconductor market share, from around 10% today to 20% by 2030. Meanwhile, China has established a massive Integrated Circuit Industry Investment Fund, channeling investment across the entire semiconductor value chain, from design and manufacturing to equipment production.
In the critical minerals sector, the U.S. has issued a critical minerals list that invoked the Defense Production Act to fund domestic mining and processing of lithium, graphite, manganese, and other essential materials. The European Union has created the European raw materials alliance to reduce reliance on single-country sources for key materials such as rare-earth permanent magnets. At the same time, China has been actively acquiring and investing in mineral resources worldwide, including in Africa and South America, to secure supply stability. As countries continue to implement policies centered on their respective strategic industries, the global dominance and influence of strategic supply chains will be further reinforced.
Under deglobalization and intensifying geopolitical competition, the global system of cross-border production and supply chains is undergoing fragmentation, gradually evolving into two parallel structures. Among them, strategic supply chains prioritize reliability, while corporate supply chains continue to emphasize cost control. Together, they form a new landscape for supply chain organization in the post-globalization era.
From a policy perspective, the operation of a strategic supply chain hinges on five key elements: inventory lists, regulations, control mechanisms, competitive strategies, and cooperation frameworks. Competition therein is of course, both inevitable and multifaceted, as competition exists not only in the acquisition of resources but also in their utilization. Where there is competition, there must be strategic solutions. At the same time, collaboration and coordination between enterprises and markets are crucial aspects of strategic supply chain management. Cooperation at these levels ensures that the strategic supply chain does not devolve into a "self-destructive chain". All these elements together should form the comprehensive planning framework of a strategic supply chain. For local governments, conducting a comprehensive audit of regional resources to assess whether they meet the needs of the strategic supply chain is vital for future development planning. Once strategic resources are involved, both resource advantages and pricing dynamics will differ significantly, making such evaluation an essential component of long-term competitiveness.
In essence, the strategic supply chain has long surpassed its role as a mere "trade instrument", and it has become both the ballast for national economic stability and a strategic lever of international competition. Its distributed configuration is designed to mitigate geopolitical risks; its high strategic positioning serves to safeguard core national interests; and its weaponized application aims to secure dominance over global industrial and trade networks.
As things stand, strategic supply chain issues will only grow in importance. In the era of deglobalization, amid increasingly fragmented global production spaces, whoever commands the strategic supply chain will determine the future of the nation itself.
Final analysis conclusion:
Driven by geopolitical dynamics, the global system of cross-border production and supply chains is no longer merely a tool for cost optimization. Instead, it has split into two parallel structures: the strategic supply chain and the corporate supply chain. The strategic supply chain, primarily managed under state leadership, features a distributed configuration and extends far beyond the traditional scope of corporate production and distribution. It has become an integral component of international trade, implemented through each nation's strategic industries, and is directly tied to the stability and prosperity of national economies, even serving as a powerful instrument of trade leverage.
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Xia Ri is an Industry Researcher at ANBOUND, an independent think tank.
