Supply Chain Resilience of Mineral Resources Industry in China

ABSTRACT

Improving the supply chain resilience of the mineral resources industry is crucial for ensuring national economic security in China. Based on the supply and demand data of China's mineral resources industry from 2002 to 2018, this study adopts system dynamics model to simulate the supply chain resilience of the mineral resources industry, the mining industry, and the smelting and processing industry under the scenario of steady economic development and the scenario of supply chain crisis. From the simulation results, the reserves of the mineral resources industry and the smelting and processing industry under the two scenarios are nearly the same, indicating that they are weakly affected by the foreign market, and both have strong resilience. The mining industry has a high dependence on imports and a lack of supply chain resilience. Under the condition of steady economic development, the output of the mining industry needs to develop at a low speed to reduce production capacity. More attention should be paid to the high level of import dependence and insufficient supply chain resilience of the mining industry. In the stable international trade situation, reserves of important minerals should be increased to alleviate the resource shortage during the supply chain crisis.