China to advance international industrial, supply chain cooperation

Estimated reading time: 6 minutes

By Ren Hongbin

The international political and economic landscape is in the midst of profound and complex changes, with frequent outbreaks of regional conflicts and disturbances, intensified major-country competition, and backlash against globalization. Against this backdrop, the restructuring of global industrial and supply chains is occurring at an accelerated pace.

On one hand, the rapid development of a new round of technological revolution and industrial transformation represented by information technology, artificial intelligence, and new energy has made digitization and green development the major directions for the transformation and upgrading of industrial chains and supply chains.

On the other hand, influenced by factors such as the rise of protectionism, public health crises, and geopolitical turmoil in recent years, industrial chain and supply chain cooperation is more and more politicized and the concept of security is often overstretched.

Countries have different resource advantages and levels of development, and only through economic and trade cooperation can they achieve complementary advantages and win-win results.

While developing itself, China, the world's largest developing country, has actively participated in global industrial and supply chains cooperation, continuously making new contributions to the stable operation of the global industrial chain and supply chains.

China promotes the building of a safe and stable industrial and supply chain system.

China has the most complete industrial categories and the most comprehensive supporting system according to United Nations standards. The country's manufacturing value added accounted for approximately 30 percent of the global total in 2023. Official statistics showed that China tops the world in terms of output of more than 40 percent of 500 major industrial products.

In recent years, China has improved its position in the global division of labor in mid- and high-end industries such as electronics and electrical equipment, and machinery equipment, providing important support for the stable operation of the global industrial and supply chains, and becoming a solid and reliable part of the global division of labor.

China promotes the building of a smooth and efficient industrial and supply chain system.

In recent years, guided by high-quality Belt and Road cooperation, China has promoted "hard connectivity" of infrastructure and "soft connectivity" of rules and standards with Belt and Road partner countries.

China has signed over 200 Belt and Road cooperation documents with more than 150 countries and over 30 international organizations, to strengthen alignment and coordination in strategic development planning and management standards and rules.

Iconic projects such as the China-Europe freight train service, the Hungary-Serbia Railway, and the Jakarta-Bandung High-Speed Railway have effectively reduced the cost of cross-border commodity transportation and transactions, promoting the quality and efficiency of the global industrial and supply chains.

China promotes the building of a mutually-beneficial industrial and supply chain system.

China pursues a more proactive strategy of opening up. It shares with the rest of the world the vast market of over 1.4 billion people. It has become a major trading partner with more than 150 countries and regions, maintaining its position as the world's second-largest consumer market and the largest trading nation in goods. Over 90 percent of foreign-funded enterprises in China primarily target the Chinese market.

China, continuously expanding market access, is working to foster a world-class business environment that is market-oriented, law-based, and internationalized. It ranks at the forefront globally in attracting foreign investment, which provides ample opportunities for multinational companies to expand globally.

China promotes the building of an open and inclusive industrial and supply chain system.

Openness and inclusiveness are important drivers promoting common development and shared prosperity among countries. It is crucial to promote the integrated development of global industrial and supply chains as well as green and low-carbon transformation.

China advocates for mutual benefit and harmonious coexistence. It has put forward initiatives to strengthen supply chain cooperation in multilateral platforms such as the Asia-Pacific Economic Cooperation, the Group of 20(G20), and the BRICS, calling for joint efforts to eliminate non-economic factors that disrupt economic and trade relations.

China is actively promoting international cooperation on green development. Its high-quality production capacity in electric vehicles, lithium-ion batteries, and photovoltaic products enriches global supply and drives the green development of the global industrial chain. It has hosted the ASEAN Plus Three Industrial Chain and Supply Chain Partnering Conference to help enterprises from relevant countries integrate into the global industrial and supply chains.

In 2023, the China Council for the Promotion of International Trade(CCPIT) hosted the first China International Supply Chain Expo. As the world's first national-level exhibition with a focus on the supply chain, it has effectively brought together upstream, midstream, and downstream sectors, facilitated integration among large, medium, and small enterprises, fostered collaboration among enterprises, universities, research institutions, and end-users, and enhanced interaction between Chinese and foreign enterprises. The expo has become a new open platform propelling two-way exchanges and win-win cooperation between China and the world.

The second China International Supply Chain Expo was held in Beijing from Nov. 26 to 30 this year. During the five-day expo, over 600 exhibitors from nearly 70 countries and regions established cooperative ties with more than 37,000 upstream and downstream suppliers.

Together with all parties, we will promote the building of closer global industrial and supply chain partnerships, and make new contributions to promoting the recovery and development of the world economy.

(Ren Hongbin is the chairman of the China Council for the Promotion of International Trade.)