Impact of digital currency on China's traditional financial system

Abstract

Structure and scope of the master's thesis is 84 pages, 55 references, 4 tables and 3 figures. The master's thesis consists of an introduction, three chapters, a conclusion and a list of references.

Key words: supply chain, supply chain diversification, economic security, enterprise economic security, China,

The relevance of the topic

Post-pandemic supply chain disruptions, geopolitical tensions as well as regional conflicts have highlighted vulnerabilities in centralized supply chains. As a global manufacturing hub, Chinese enterprises face pressure to balance cost efficiency along with resilience. Supply chain diversification is critical for mitigating risks like overreliance upon single markets, raw material shortages, or export restrictions. China’s "dual circulation" strategy emphasizes domestic resilience and global competitiveness, making supply chain diversification a strategic imperative for economic security.

Purpose of the research

The research purpose is to quantify supply chain diversification's impact upon Chinese enterprises' economic security, identify trade-offs as well as inform strategic decisions.

Object of the research

The object of the research is the economic security of enterprises in China, defined as their ability to withstand external shocks while maintaining operational stability and profitability.

Subject of the research

The subject of the research is enterprise supply chain diversification strategies in China.

Research objectives

1) To evaluate how diversification levels correlate along with economic security indicators;

2) Analyze industry-specific differences and firm characteristics;

3) foster frameworks for balancing diversification along with cost efficiency.

Research methodology

The research employs a mixed-methods approach, combining quantitative and qualitative methods. Quantitatively, it uses financial data analysis, regression analysis as well as structural equation modeling (SEM) to measure correlations and test hypotheses related to diversification and economic security. Qualitatively, it includes case studies of firms along with varying levels of diversification to supply in-depth insights.

Research results and novelty

The research demonstrates a significant positive correlation between supply chain diversification and economic security in Chinese enterprises. Diversified supply chains enhance resilience to external shocks, operational continuity as well as financial stability. The study identifies industry-specific differences together with firm characteristics as key moderators influencing the effectiveness of diversification strategies. Larger firms with advanced technological capabilities together with substantial financial resources are better positioned to benefit from diversification. The research also proposes frameworks to balance diversification with cost efficiency, including the “China Plus N” strategy and strategic inventory management.