ScholarWorks@숙명여자대학교

초록

Due to rising costs in China and the US government’s incentives, US manufacturing companies’ move from China to the US, is becoming visible. Considering China's production and manufacturing capacity, efficient logistics system, and integration with Asian supply chains, the general view was that it would not be easy to leave China from the global supply chain. However, as the COVID-19 pandemic occurs in China, a global manufacturing base, there are concerns that it will be difficult for the supply chain to operate smoothly. Unlike the global financial crisis of 2007, the COVID-19 crisis caused not only a demand-side shock, but also a supply-side shock to a greater extent. From the early stages of the pandemic, there has been a lot of discussion that China's production closures will lead to potential supply-side disruptions to other countries through GVC. In this study, using Porter's diamond model, we are empirically analyzing the impact on reshoring decisions of Korean manufacturing companies entering China, focusing on moderating effect of the COVID-19 pandemic. First, the study confirmed that market conditions, related and supporting conditions, Chinese government policies and smart factory technology application impacted on the reshoring decisions. This result confirms that high market access barriers, low interindustry-related effects, government regulations and smart reshoring act as triggers for Korean companies’ reshoring decisions. On the other hand, production and management conditions did not impact on the reshoring decisions; this may be due to the Chinese government’s efforts to improve business conditions by enforcing IPR protect law, however Korea’s already rigid employment structures are getting worse. Second, it was found that Covid-19 did not accelerate the impact of production, market, related and supporting and management conditions, government policies and smart factory technology application on reshoring decisions even under the significance level of 0.1. This seems to result from a variety of factors: stabilization of production and market conditions in China; China’s exceptional supply chains; Korean companies’ initial strategies of tailoring their management systems to fit local market and government policy, when entering the Chinese market. Lastly, this study explores implications of reshoring obstacles like Korea’s rigid labor market, labor regulations, high corporate tax, and environmental regulations.

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