CISCE event in Beijing sees China win high praise for its strengths in providing support networks for businesses

A Tesla vehicle on display at the China International Supply Chain Expo in Beijing. (WANG JING / CHINA DAILY)

China’s active support for global supply chain cooperation will help both domestic and foreign businesses accelerate digital and green transformation, effectively spurring innovation and fostering collaborations among a wide range of stakeholders, according to a report released in Beijing on Nov 28.

The supply chain-themed report also stated that continuous enhancements in trade and investment facilitation, along with liberalization, can ensure the stable and smooth operation of global supply chains.

The study was released by the China Council for the Promotion of International Trade, or CCPIT, during the first China International Supply Chain Expo (CISCE), which kicked off in Beijing on Nov 28 and will run until Dec 2.

As Western countries have elevated the global supply chain competition from the micro business level to the macro level of national strategy, China has continuously optimized its supply chain strategy to remain competitive, the report noted.

Speaking at an expo forum, Ren Hongbin, chairman of the CCPIT, said China will continue to ensure the seamless operation of industrial and supply chains. The country has excelled in its role as a manufacturing powerhouse by safeguarding the stability of industrial and supply chains, leveraging manufacturing advantages, developing a vast market scale, and introducing a high level of openness.

Long Guoqiang, vice-president of the Development Research Center of the State Council, agreed, saying the need to enhance the operations of global supply chains has become a central focus of strategic initiatives pursued by businesses and governments across the world.

Despite the widespread emphasis on supply chain resilience resonating across industries and many economies, a noticeable gap has emerged — a considerable absence of coordinated efforts to ensure that the restructuring endeavors lead to a genuinely robust, resilient, and efficient global supply chain network, he said.

Echoing that sentiment, Sun Xiao, secretary-general of the Beijing-based China Chamber of International Commerce, said the hosting of the CISCE underscores China’s dedication to stabilizing and strengthening the global supply chain, and countering Western countries’ calls for “de-risking”, a euphemism for “decoupling” from China.

Sun said the extensive participation of global companies such as GE HealthCare, AP Moller-Maersk, and Exxon-Mobil in the expo signals their enthusiasm to deepen connections with China, explore business opportunities in China’s opening-up and reject the so-called “decoupling” moves.

Many foreign companies appear to share that stance as the latest data from the Ministry of Commerce showed the number of foreign-invested enterprises newly established in China between January and October reached 41,947, up 32 percent year-on-year.

Liu Hongsheng, president of Syngenta Group China, a seeds and pesticides manufacturer, said China’s large consumer base offers considerable market opportunities for agricultural products, positioning the country as a key market in the global agricultural supply chain.

“Leveraging our global agribusiness strengths, we are actively exploring and implementing the agriculture value chain model worldwide. Through strong global supply chain and trade activities, we are able to connect the vast demand in the Chinese market with global suppliers and farmers,” said Liu.

CrimsonLogic Pte Ltd, a Singapore-based digital trade solutions provider, plans to expand its investment in the Chinese market, further enhance its local team’s capabilities, and strengthen customer service to deepen cooperation with local governments and business partners in the country, said Ng Chee Keong, the company’s vice-president of North-East, Central and Southeast Asia and general manager of its China unit.

“China has played a key role in trade and infrastructure development in member economies of the Association of Southeast Asian Nations through the tangible growth of the Belt and Road Initiative, further deepening economic, cultural, trade and other exchanges between the two sides,” he said. “We are seeing more growth opportunities arising from it.”

Multinational companies are showcasing the latest technologies and products at the maiden China International Supply Chain Expo to achieve greater market share, executives said, even as they forge deeper bonds with Chinese business partners in the key sector.

China’s well-developed supply chain, technology, and huge market potential will not only assist global companies in implementing innovation in the country, but also motivate them to exhibit additional products, technologies, and services for high-end manufacturing, green economy, and digital services through the first-ever such platform, they said.

China’s resilient supply chains have given multinational companies strong confidence to deepen their market development amid the improved business environment in the country in recent years, Alf Barrios, Rio Tinto’s chief commercial officer, said on Nov 28.

China, as a powerful engine of global growth with a steadily recovering economy, is a pivotal force for global manufacturing and trading, as well as an important stabilizer in the global supply chain, he said.

China is not only the largest market for Rio Tinto, but also an increasingly important source of business partnerships, talent, and technology, Barrios said on the sidelines of the CISCE.

Rio Tinto is currently China’s largest iron ore supplier with around 250 million metric tons of shipments every year and it has purchased over $14 billion worth of Chinese goods and services since 2012, Barrios said. 

More than half of the company’s conveyor belts used in mines in Australia’s Pilbara region are provided by Chinese company Wuxi Boton Technology Co Ltd, which also supplies Rio Tinto’s operations in Mongolia and Canada.

Most rail cars that Rio Tinto uses at its mines in Western Australia are from China’s CRRC Qiqihar Rolling Stock, a CRRC subsidiary in Northeast China’s Heilongjiang province, Barrios said.

The company also buys raw materials and equipment from China to support production in Canada, Australia, and South Africa.

China, which has proactively opened its market to the outside world, has become a primary trading partner of countries and regions worldwide, said Luo Zuoxian, head of intelligence and research at the Sinopec Economics and Development Research Institute.

As China has been leading in the development of emerging technologies and industries, from electric vehicles to solar power, multinational corporations such as Rio Tinto — with the advantage of its local resources and market potential — have been stepping up supply chain cooperation with China in recent years, Luo said. 

“China is leading green technology development in multiple areas globally and we see great potential for further collaboration. We will also continue to conduct research and development with partners in China to jointly explore applicable technologies and decarbonization solutions for the industry’s low-carbon transition,” said Barrios.

“We are committed to becoming a partner of choice in China’s high-quality development agenda, constantly providing high-quality and sustainable materials that China needs.”

US electric carmaker Tesla Inc said it hopes to explore, at the CISCE, successful experiences in other industries and find more suppliers to accelerate the world’s transition to sustainable energy.

“As a participant and beneficiary of the integrated development of the global supply chain, we will leverage our strengths to contribute to the establishment of a globally secure, stable, efficient, and mutually beneficial production and supply chain system,” said Tao Lin, Tesla’s vice-president.

“At present, the localization rate of components in Tesla’s gigafactory has exceeded 95 percent in Shanghai, with an automation rate of over 95 percent. It takes less than 40 seconds to produce one car,” she said.

Tesla has signed contracts with over 400 local tier-one suppliers. Over 60 of these are part of the company’s global supply chain system, Tao said.

With products being shipped to Europe and Asia-Pacific markets, the Shanghai plant serves as Tesla’s global export hub.

The company’s total global deliveries exceeded 1.31 million vehicles in 2022, with over 710,000 vehicles rolling out of its gigafactory in Shanghai.

Jens Eskelund, chief representative for North Asia at Danish shipping and logistics service provider AP Moller-Maersk, also hailed China’s supply chain strengths.

“Global trade and supply chains have created jobs, value, and opportunities on a vast scale, in particular over the past three decades. China is a great example of this trend,” Eskelund said at the company’s CISCE booth.

He said the grand event highlights the potential of international supply chains for bringing people together and creating prosperity for all, now and in the future.

The CISCE has attracted international exhibitors from 55 countries and regions. About 36 percent of these are US and European companies, including Amazon, ExxonMobil, and Apple, according to the China Council for the Promotion of International Trade, the expo’s organizer.

Saying that the CISCE injects stability in global trade, Eddy Chan, senior vice-president of the US-based FedEx Express and president of FedEx China, stressed that today’s world is interconnected, especially in economy and trade.

“An integrated supply chain, through cross-border collaboration, is the key for businesses to tackle risks and achieve growth in the vast international market,” Chan said.

By constantly optimizing its network and flights, expanding the infrastructure, and enhancing efficiency, FedEx will continue to connect China with the outside world through its global network, he added.

Contact the writers at zhongnan@chinadaily.com.cn