Economic security in global production

Understanding how global production networks are evolving is increasingly important for economic security. Changes in the geographical concentration of production and international supplier relationships can reshape countries' exposure to external disruptions, including through indirect dependencies that extend beyond direct trading partners. OECD Inter-Country Input-Output (ICIO) analysis reveals significant shifts in global manufacturing over the past two decades. While no individual economy accounted for more than 28% of world value added in any manufacturing industry in 2000, by 2024 China accounted for approximately 37–47% in five industries. These changes have also reshaped international supplier relationships. China's position as the largest foreign source of value added in country-industry final demand relationships increased from around 4% in 2000 to 40% in 2024 with a large margin to the next supplier. These developments highlight the importance of looking beyond bilateral trade statistics to understand economic dependencies and supply-chain resilience. By tracing where value is created and how it moves through global value chains, ICIO analysis can reveal concentrated and asymmetric dependencies, including those transmitted through third economies. This provides an evidence base for identifying potential vulnerabilities and informing targeted resilience policies, while recognising that economic interdependence does not necessarily imply vulnerability.