WTO chief economist Steger said in an interview in Bangkok, Thailand, that it is necessary to distinguish between a strong supply chain and a resilient supply chain. He further explained that true supply chain security is not about “rigidity and strength” that pursues self-sufficiency, but rather “resilience” to find alternative paths at any time when supply is cut off. He further explained that the so-called strong supply chain means seeking an absolutely continuous supply path. Countries that adopt this strategy often tend to establish all the industries they need locally; while a resilient supply chain means that even if a specific supply source is interrupted, enterprises and countries can quickly find another alternative source in the international trade system. Steger said that the “robust” strategy to try to be self-sufficient in everything is not only extremely expensive, but also seriously deviates from the principle of comparative advantage. It is for this reason that a rules-based multilateral trading system is essential, as it provides predictable entry conditions and stable supply expectations for global markets, enabling countries to rely on the “flexibility and substitutability” of the system rather than falling into self-sufficiency.

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