Impact of Foreign Exchange on Supply Chain of the Logistics Industry

Abstract

China is the world's largest manufacturing country, the most important link in the global industrial chain, and the world's second largest consumer market after the United States. China's manufacturing industry has also been affected by the epidemic, and its transformation and upgrading have been affected. China's total manufacturing industry has occupied the world's top position for many years in a row, becoming an indispensable link in the global production chain. In the situation of global manufacturing shift, some labor-intensive industries are gradually moving out of China as the cost of labor factors rises. The new epidemic has further accelerated the outward migration, especially in the pharmaceutical and medical device sectors, where many countries are concerned about the security of their supply chains due to their over-dependence on China, and some overseas countries have widely raised the slogan of "de-Chinaization". With the normalization of the epidemic, the acceleration of the reverse globalization process and the rise of trade protectionism, the position of Chinese manufacturing in the global value chain will be affected. According to the data, it can be found that the first thing that affects the Chinese manufacturing industry is the import and export, like Brazil, which has frequent trade with China, has a higher dependence on rubber and plastic manufacturing and a more pronounced dependence on chemical and pharmaceutical manufacturing in terms of imports. The international competitiveness of China's major manufacturing industries is analyzed using the RCA-VA index. Finally, specific solutions are proposed to address the risks posed by the epidemic.