Publication Type

PhD Dissertation

Version

publishedVersion

Publication Date

3-2025

Abstract

The China-US trade war disrupted nearly half a century of trade liberalization, impacting the global distribution of production and the configuration of supply chains. This paper focuses on automobile production and tire supply to analyze the impact of industrial layout changes during the China-US trade war on the global supply chain structure. The study finds that for US automobile production, the trade war presents both positive and negative effects. While tariffs on automobiles protect the local automotive market, the increased production costs due to tariffs on components place US-made cars at a competitive disadvantage in the global market, negatively affecting automobile production. The difference in the targets of these effects leads to a structural change in the US automotive production landscape—production aimed at the US market shifts towards the US, while production targeting the international market shifts out of the US. This shift prompts the US to replace the Chinese supply chain with markets such as Mexico and Vietnam. In response, Chinese companies adopt strategies like trade relocation and production relocation to mitigate the negative impact of increased tariffs. The existence of production relocation makes it difficult for the US to exclude Chinese companies from its supply chain, instead accelerating the globalization of Chinese enterprises. These changes have profound implications for global automobile production and supply chain configurations.

Keywords

Trade war, global supply chain

Degree Awarded

Doctor of Bus Admin (CKGSB)

Discipline

Operations and Supply Chain Management | Strategic Management Policy

Supervisor(s)

LIM, Yun Fong

First Page

1

Last Page

118

Publisher

Singapore Management University

City or Country

Singapore

Copyright Owner and License

Author

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