Samjong KPMG "In US-China Conflict, Global Companies Must Have Supply Chain Strategies"

Global Supply Chain Pressure Index Rises Due to US-China Competition
Key Strategies Presented Including Integrated Management System
"Core Corporate Response Strategies for Survival and Sustainability"

As countries around the world are securing economic security through the reorganization of supply chains centered on their own countries and strengthening protectionism, an analysis has emerged that global companies urgently need to devise strategies for survival and sustainability amid complex regulations.

On the 5th, Samjong KPMG diagnosed the recent global supply chain crisis and presented the risks faced by companies and countermeasures through the report "Corporate Supply Chain Response Strategies Amid the Global Regulatory Storm." According to the report, due to the US-China strategic competition, the Russia-Ukraine war, climate change, and other factors, the Global Supply Chain Pressure Index (GSCPI) is showing high volatility, and accordingly, major countries are introducing various regulations aimed at protecting their domestic industries and stabilizing supply chains.

The United States is promoting containment of China and fostering domestic industries through legislation such as the CHIPS and Science Act and the Inflation Reduction Act, while strengthening mandatory labor due diligence and Buy America regulations. The European Union (EU) is also expanding environment- and sustainability-centered regulations through the Carbon Border Adjustment Mechanism (CBAM), Corporate Sustainability Due Diligence Directive (CSDDD), and Critical Raw Materials Act (CRMA).

The report emphasized that companies need to build platforms and certification systems to integrally respond to complex regulations such as ESG disclosures, carbon emission regulations, and trade sanctions. The main response strategies proposed are ▲establishing an integrated management system ▲responding to regulatory due diligence ▲strategic supply chain management ▲strengthening third-party certification ▲introducing third-party certification.

Samjong KPMG Partner Bong Chansik stated, “The global supply chain crisis and regulatory changes are key factors determining the survival and sustainability of companies,” and emphasized, “It is necessary to have strategies that mitigate risks based on regulatory response systems and certification frameworks.”