The New York TImes today reports China's explanation for blocking the visit to Hong Kong last week of a U.S. carrier battle group and other American warships. The lack of hospitality was actually in retaliation against the upgrading of Taiwan's Patriot anti-missile batteries, proposed by the Bush administration. Even two minesweepers were turned away from Hong Kong's protected harbour when seeking shelter from a storm. Although China later rescinded its decision, the Pentagon launched a formal complaint as senior U.S. naval commanders said they were 'perplexed and troubled.'

Yet two commentaries today on China's global supply chain dynamics give a different perspective of the expanding levels of engagement. Author and Boston Consulting Group senior partner Hal Sirkin writes in the Washington Times that the era of the global supply chain has arrived, and companies need to deal with it and adapt accordingly. While the U.S. and Chinese militaries might not be the best of friends, relations are much better between the Consumer Product Safety Commission (CPSC) in the U.S. and its Chinese counterpart, the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ), who have concluded an agreement supposed to resolve safety issues. The real responsibility for ensuring safety, however, Sirkin writes, lies in 'corporate boardrooms and with corporate managers' and their ability to monitor global supply chains. Low-cost demands extra vigilence, and companies should monitor their suppliers instead of simply blaming 'the Chinese.'

Bradley Feuling today in Industry Week adds an interesting assessment of the status of the China supply chain. Whereas cost was originally the primary driver for companies entering China, quality has since become increasingly important, and this has emphasised machinery investment and internationally recognised certifications. But today, according to Feuling, companies must pay more particular attention to the China supply chain itself. As opposed to squabbling as independent operators for supply chain knowledge, execution and talent, Chinese manufacturers can take advantage of new competitive advantages as China's expansion continues. In fact,  

By further developing a supply chain and procedural mindset, we may witness a true great leap forward rapidly approaching.