Promoting international cooperation in industrial and supply chains

BEIJING, Nov. 21, 2024 /PRNewswire/ -- This is an article from China.org.cn:

Chinese President Xi Jinping has emphasized that in a world of economic globalization, only by upholding openness and cooperation in global industrial and supply chains can win-win development be achieved. The resolution adopted at the third plenary session of the 20th Central Committee of the Communist Party of China (CPC) proposed facilitating international cooperation in industrial and supply chains. In alignment with these instructions, the China Council for the Promotion of International Trade (CCPIT) has embraced its mission by safeguarding the public-good nature of industrial and supply chains, fostering connections between government and business, integrating domestic and global markets, and streamlining coordination between supply and demand. As part of these efforts, the CCPIT is meticulously preparing for the second China International Supply Chain Expo (CISCE), so as to contribute to the development of an open global economy and the building of a community with a shared future for humanity.

Rapid reconstruction of global industrial and supply chains

The world today is undergoing major changes unseen in a century. Profound and complex shifts in the international political and economic landscape are marked by frequent local conflicts and turmoil, intensified rivalries among major powers, and a rising wave of anti-globalization. Against this backdrop, the restructuring of global industrial and supply chains is occurring at an accelerated pace.

On one hand, a new wave of scientific and technological revolutions, represented by information technology, artificial intelligence and new energy, is rapidly advancing. Digitalization and green transition have emerged as the primary directions for upgrading and modernizing industrial and supply chains. In response to these sweeping technological and industrial trends, countries around the world are making forward-looking strategies and investments. Breakthroughs in cutting-edge technologies are triggering changes in traditional industrial chains, giving rise to new fields and sectors such as artificial intelligence, green energy and biomedicine. These developments are significantly enhancing the efficiency and quality of supply systems, generating substantial new demand, and creating opportunities for global cooperation in industrial and supply chains while injecting new vitality into development.

On the other hand, due to the rise of protectionism, public health crises and geopolitical turmoil in recent years, industrial and supply chain cooperation has shown tendencies of politicization and securitization. Some nations are promoting "decoupling" and "small yard, high fence" policies, prompting multinational companies to shift their priorities from pursuing "cost and efficiency" to balancing "efficiency and security." This trend has driven global industrial and supply chains toward onshoring, nearshoring and friendshoring, heightening the risk of economic fragmentation.

Given the diverse resource endowments and development levels of different countries, economic and trade cooperation remains the only viable path to achieving complementary strengths and mutual benefits. As the world's largest developing country, China has long been committed to its own development while deeply participating in global industrial and supply chain cooperation, continuously making new contributions to the stability and resilience of global industrial and supply chains.

China as a pillar of stability for global industrial and supply chains

Security and stability are the cornerstones of development. Achieving these requires enhancing global resource coordination of key industrial chains, ensuring that countries and businesses have reliable partners and stable development expectations. 

China has the world's most comprehensive industrial categories and a well-rounded industrial system, with manufacturing value-added accounting for around 30% of the global total, and over 40% of major industrial products ranking first in global output. In recent years, China's position in mid-to-high-end industries, such as electronics, electrical equipment and machinery, has risen rapidly within the global division of labor. This has provided significant support for the stable operation of global industrial and supply chains, establishing China as a solid and reliable player in the global economic system.

The world economy operates as an interconnected whole. It requires the seamless circulation and effective allocation of production factors, while China plays a pivotal role in driving global connectivity. 

With high-quality Belt and Road Initiative (BRI) cooperation as a guide, China has focused on strengthening the "hard connectivity" of infrastructure and the "soft connectivity" of rules and standards with partner countries. To date, China has signed over 200 BRI cooperation agreements with more than 150 countries and 30 international organizations, aligning development strategies, management rules and standards. Landmark projects such as the China-Europe Railway Express, the Hungary-Serbia Railway and the Jakarta-Bandung High-Speed Railway have been completed, significantly reducing cross-border transportation and transaction costs while enhancing the quality and efficiency of global industrial and supply chains.

China pursues a proactive strategy of opening up and sharing the benefits of its vast market of over 1.4 billion people with the world. It has become the primary trading partner for more than 150 countries and regions, firmly maintaining its position as the world's second-largest consumer market and the largest trading nation in goods. More than 90% of foreign-funded enterprises in China are oriented toward the Chinese market. By continuously easing market access, fostering a market-oriented, law-based and internationalized business environment, and attracting foreign investment on a global scale, China provides multinational companies with broad opportunities for growing their global presence.

Openness and inclusiveness are vital for fostering shared development and prosperity. Promoting the integration of global industrial and supply chains while driving the green, low-carbon transition is essential. 

Upholding the principles of harmony and coexistence, China has proposed initiatives on supply chain cooperation at such multilateral platforms as APEC, the G20 and BRICS, urging all parties to eliminate non-economic disruptions in trade relations. China has actively promoted international cooperation in green development. It has significantly enriched global supply with high-quality production capacities in electric vehicles, lithium batteries and photovoltaic products, contributing to the green development of global industrial chains. China also hosted the ASEAN Plus Three Industrial Chain & Supply Chain Partnering Conference to help enterprises in relevant countries integrate into global industrial and supply chains.

Building closer global industrial and supply chain partnerships

In line with President Xi's directives, the CCPIT successfully launched the inaugural CISCE in 2023. This is the world's first national-level supply chain expo, which has played a pivotal role in facilitating connections across the upstream, midstream and downstream sectors, promoting collaboration among enterprises of all sizes, fostering partnerships between industry, academia and research, and enhancing dealings between Chinese and international businesses. As a new open platform for win-win global partnerships, it strengthens cooperation between China and the world. 

The second CISCE is going to take place in Beijing from Nov. 26 to 30, 2024. We will adhere to the principles of internationalization, specialization, market orientation and green development in organizing the event. We aim to amplify the expo's role as a hub for trade promotion, investment cooperation, innovation and knowledge exchange, working alongside all stakeholders to build a closer global industrial and supply chain partnership. This will contribute to the recovery and growth of the global economy.

We will enhance CISCE's role as a window for high-level opening up. This year, CCPIT has hosted over 60 roadshows globally, inviting enterprises and stakeholders from around the world to participate in the second CISCE. Five international organizations – the United Nations Conference on Trade and Development (UNCTAD), the United Nations Industrial Development Organization, the World Intellectual Property Organization, the International Trade Centre (ITC) and the International Chamber of Commerce – have joined as supporting units. 

The expo has attracted more than 600 companies and institutions from nearly 70 countries, a 20% increase from its debut. Notably, over 60% of participants are either Fortune Global 500 companies or industry leaders. The percentage of overseas exhibitors has risen from 26% to 32%, with equal representation from Europe and the U.S and over 40 BRI partner countries. Delegates from over 100 countries and organizations will gather to explore the theme of "Connecting the World for a Shared Future."

We will strengthen the platform to serve the new development pattern. The 2024 CISCE serves as a bridge for industrial integration, innovative promotion and market connectivity between China and the world. It uses supply chains as a catalyst for long-term collaboration between Chinese and foreign companies, to foster a precise and dynamic corporate ecosystem.

The new advanced manufacturing chain exhibition area will focus on developing new quality productive forces with nearly 80 leading global enterprises showcasing cutting-edge technological achievements from front-end designs to end-use applications, enhancing exchanges with innovation as well as cooperation. 

Over 70 new products, technologies and services will debut alongside targeted initiatives, such as promoting high-quality industrial chains in the Yangtze River Delta and showcasing investment opportunities in the Hainan Free Trade Port. These efforts aim to turn exhibitors into investors, fostering deeper engagement and investment of global enterprises in China.

We will enrich mechanisms to foster an open and inclusive global economy. The CISCE encourages joint participation by Chinese and international enterprises. For example, Rio Tinto, Bosch, Baowu and XPeng will jointly depict a comprehensive upgrade of the smart and green automotive industry. Fonterra, together with its Chinese supply chain partners, will demonstrate sustainable development of the "farm-to-table" ecological chain. Lenovo and SAP will highlight innovations in private cloud and commercial AI. 

The expo will release the Global Supply Chain Promotion Report 2024, the Global Supply Chain Promotion Index and the Connectivity Index as well as will gather Chinese and foreign guests to discuss sustainable market initiatives and the New International Land-Sea Trade Corridor, thus providing suggestions for promoting open global cooperation.

We will broaden practical pathways for building a community with a shared future for humanity. This year, the CCPIT has been proactively sharing China's experiences in strengthening cooperation with global supply chains. It facilitated a joint APEC proposal on supply chain resilience with US business leaders, organized a delegation for the UNCTAD Global Supply Chain Forum and co-hosted a seminar on building greener and more resilient supply chains with the ITC at the World Trade Organization Public Forum.

The 2024 CISCE will release a "Beijing Initiative" to promote international cooperation in industrial and supply chains, and support the launch of industrial alliance initiatives across its six key industrial chains and one exhibition area, thus to broaden global consensus. Focusing on expanding unilateral opening up to the least developed countries, the CCPIT will support exhibitors from Africa, the Pacific Islands and the Caribbean, demonstrating in concrete actions China's commitment to inclusivity and shared prosperity.

The author is chairman of the China Council for the Promotion of International Trade.
This article was written in Chinese and translated by China.org.cn.
Opinion articles reflect the views of their authors, not necessarily those of China.org.cn.

Promoting international cooperation in industrial and supply chains
http://www.china.org.cn/opinion/2024-11/21/content_117561461.htm

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