Long supply chains pose a significant risk

Supply chain specialists warn about extended supply chains, advocating for a shift in purchasing strategies. During the Polzak 26 conference, experts emphasized the need to focus on total order costs rather than just savings from distant suppliers. Professor Frank Rozemeijer highlighted that importing goods from far countries weakens economic resilience and competitiveness, suggesting local partnerships may be more beneficial. Despite these insights, EU imports from China rose significantly, leading to a widening trade deficit. Recent agreements between China and the EU aim to stabilize trade, including limits on hybrid vehicle imports and discussions on tariffs and regulations. The EU is also pushing for an increase in the value of the yuan.