Operations Management in China

Chapter 8

Opportunities and Threats

With approximately 10 percent of China’s GDP exported and 20 percent of that sent to the U.S., local operations managers are counting on new logistics channels to diversify their customer base. A government effort of particular importance is the “One Belt, One Road” initiative. This government-led project seeks to connect China with:1

• 68 countries
• 55 percent of the world’s GNP
• 70 percent of the world’s population, and
• 75 percent of known energy reserves

As shown in Figure 8.1, the “Belt” consists of highways and rail lines connecting factories in China to Russia in the North and Europe in the West. The “Road” consists of shipping lanes traversing Southeast Asia, South Asia, Africa, and Europe.

Figure ...