Connecting the World for a Shared Future: Firmly Safeguarding Stable and Smooth Global Industrial and Supply Chains

Ren Hongbin

In order to follow through on the important instructions of General Secretary Xi Jinping to safeguard stable and smooth global industrial and supply chains, the China Council for the Promotion of International Trade held in Beijing from November 28 to December 2, 2023, the first China International Supply China Expo (CISCE). Premier Li Qiang attended and delivered a keynote speech at the opening ceremony of the CISCE & International Supply China Innovation and Development Forum. As the worlds first national-level exhibition themed on the supply chain, the CISCE, themed “Connecting the World for a Shared Future”, aims to create a new window for promoting high-level opening up, a new platform for fostering a new development paradigm, a new vehicle for building an open world economy, and a new practice for building a community with a shared future for mankind. It was a pragmatic, effective, and fruitful global trade event, a positive contribution to global economic recovery, development and prosperity.

The Important Instructions of General Secretary Xi Jinping on Safeguarding Stable and Smooth Global Industrial and Supply Chains Point out the Direction for Deepening International Industrial Chain and Supply Chain Cooperation.

The world today is undergoing changes unseen in a century that are accelerating at a faster pace. The global industrial and supply chains have experienced shocks. At the same time, a new round of scientific and technological revolution and industrial transformation is deepening. The global landscape for innovation and the international economic structure are seeing profound readjustments. Grasping the underlying trends of domestic and international industrial development, General Secretary Xi Jinping has put forward a series of new ideas, new proposals and new initiatives for keeping the global industrial and supply chain stable and smooth, which fully demonstrates the strategic vision of the leader of a major country.

Industrial and supply chains are important global public goods. As pointed out by General Secretary Xi Jinping, “Global supply chains, industrial chains and value chains are closely interconnected. Each country is a link in global cooperation, part of a community with shared interests and shared future”; “It is an important guarantee for global economic development to safeguard the resilience and stability of global industrial and supply chains”. These important instructions have made clear the significance of keeping the global industrial and supply chains stable and unimpeded, raising the awareness that global industrial and supply chains are global public goods.

To consolidate and strengthen global industrial and supply chain cooperation is in the interest and an earnest expectation of all sides. In recent years, China has put forward relevant initiatives and statements on many occasions at multilateral platforms such as APEC, G20, the SCO, and BRICS, thus contributing Chinese wisdom, Chinese solution, and Chinese strength to keeping the global industrial and supply chains stable and smooth. In September 2022, China held the International Forum on Resilient and Stable Industrial and Supply Chains, and launched the “Initiative on International Cooperation on Resilient and Stable Industrial and Supply Chains” together with 6 partner countries including Indonesia. In September 2023, at the 26th ASEAN Plus China, Japan, ROK Summit, China proposed the 10+3 Industrial and Supply Chain Match-up Conference. Going forward, we should firmly safeguard the public good nature of the global industrial and supply chains, promote resource coordination among countries on key industrial chains, take active part in building a resilient global industrial system, and provide more global public goods shared by all so as to help build an open world economy.

Global industrial and supply chains are facing a shake-up. General Secretary Xi Jinping pointed out that “the global industrial system and global industrial and supply chains have demonstrated the trends of diversified layout, regional cooperation, green transformation, and accelerated digitalization, which are in line with the laws underpinning economic development and underlying historical trends beyond the control of the will of the people.” This important statement is based on a deep grasp of the new situation and new changes concerning the global industrial and supply chains, which provides important guidance for the sustainable development of a global industrial system that is open and shared by all.

Over the past decades, economic globalization led by multinational corporations have evolved and developed rapidly, leading to accelerated integration of global industrial and supply chains and a supply chain network featuring the U.S.-centered North America supply chain, the Germany-centered European supply chain and the Asian supply chain centering around China, Japan and the ROK. As things stand, the global industrial and supply chains are demonstrating new features. On the one hand, affected by rising protectionism, public health crisis, and geopolitical turmoil, there is the trend of politicization and security over-stretching in industrial and supply chain cooperation, with the risks of economic fragmentation; on the other hand, with accelerated evolution of the new round of scientific and technological revolution, digitalization and green transformation have begun to represent the direction for the future development of the global industrial and supply chains. Going forward, with the underlying laws and trends in mind, we should not only oppose “decoupling and the cutting-off of chains” in all its forms and promote integrated development of global industrial and supply chains, but also grasp the latest developments of the scientific and technological revolution with an eye to promoting harmony between man and nature, facilitating green and low-carbon transition of the industrial and supply chains, and better tackling global challenges such as climate change.

We need to deepen global industrial and supply chain cooperation. As stressed by General Secretary Xi Jinping, we need to safeguard stability of industrial and supply chains, upgrade the level of industrial development and global economic participation, and promote shared development and prosperity. These words have laid out the routes to promoting stable global industrial and supply chains and injected strong imputes into building equal, inclusive and constructive partnerships in global industrial and supply chains.

Both a participant and beneficiary in global industrial and supply chain cooperation and a firm defender for their stability, China has contributed to ensuring smooth and unimpeded functioning of global industrial and supply chains and international economic flows. As the worlds second largest consumer market, China has continuously provided wider market access and facilitated imports, making it the second largest importer for 14 consecutive years. Major events such as the International Import Expo, the Guangdong Fair, and the CIFTIS, have achieved great success. The BRI has become a widely popular global public good and platform for international cooperation, which has brought global industrial and supply chain cooperation into greater depth and width. We will continue to expand high-level opening up, share with the world the new opportunities unleashed by Chinas huge market, and help foster a system of global industrial and supply chains with extensive participation that enables every country to tap into their advantages. We will help more developing countries to get deeply involved in global value chains and share the development dividends of the global manufacturing network.

We need to ensure that Chinas industrial and supply chains are safe and stable. As emphasized by General Secretary Xi Jinping, “industrial and supply chains must be able to hold up at crucial junctures, which is the defining feature of a major economy”. General Secretary Xi also called for “accelerating the building of a modern industrial system supported by the real economy” and “devising the layout of industrial and supply chains with a global vision and continuously improving their resilience and security”. These instructions, which provide strategic and practical guidance, have laid out the fundamental requirements for enhancing the continuity and competitiveness of Chinas industries and promoting the deep integration of domestic and international industries.

China has the most complete categories of industries and supporting facilities as defined by the United Nations. The size of its manufacturing industry has topped that of the world for 13 consecutive years, with the added value accounting for nearly 30% of the worlds total. Over 40% of its industrial products top the world. In recent years, it is fast advancing in middle-and high-end industries such as electric equipment, manufacturing equipment, etc. China is also leading in new energy development such as PV and other sectors. It has been among the first in the large-scale application of 5G and other mobile telecommunication technologies. It is a “world factory” for the global supply chain, thus providing important support for the smooth functioning of global industrial and supply chains. Facing the future, we will maintain and further enhance our advantages in terms of the comprehensive scope and supporting capacity of our industrial system to effectively pool global innovation factors, promote the integrated, smart and green development of industries, build a comprehensive, advanced and safe modern industrial system and continue with its deep participation in global industrial and supply chain cooperation.

The Successful Convening of the First CISCE has Made it a World-Recognized Global Public Good Shared by All

Premier Li Qiang attended and delivered a keynote speech at the Opening Ceremony of the CISCE & International Supply Chain Innovation and Development Forum, in which he followed on the Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, elaborated on the significance of keeping the global industrial and supply chains stable and smooth, systematically talked about the active efforts by China to get deeply involved in global industrial and supply chain cooperation, and put forward four proposals on building even closer partnerships for global industrial and supply chains. He reaffirmed the key measures that China will take to pursue high-level opening up and encouraged the business community to play a bigger role in keeping the smooth functioning of global industrial and supply chains, thus injecting confidence and inspirations into building more resilient, efficient, and robust global industrial and supply chains.

Since 2023, CCPIT had been in close consultation with relevant parties in preparation for the CISCE. Roadshows were conducted in 23 provinces (municipalities, regions) and 30 countries and regions worldwide which were met with warm response. Indonesian President Joko Widodo, Uruguay President Luis Alberto Lacalle, as well as heads of five international organizations including the WTO and personnel in charge of relevant institutions and companies attended and addressed the Opening Ceremony of the CISCE & the International Supply Chain Innovation and Development Forum via on-line and off-line format. The CISCE was held under the auspices of the United Nations Conference on Trade and Development, the United Nations Industrial Development Organization, the World Intellectual Property Organization, the International Trade Center and the International Chamber of Commerce. During the CISCE, representatives of the international business community issued the Beijing Initiative on the Connectivity of Global Industrial and Supply Chains. This fully demonstrates the common aspirations of all sides to build stable and resilient industrial and supply chains based on a broad consensus to pursue win-win and open cooperation. With the joint efforts and great support from all quarters, the CISCE was a full success and a great event linking the world and creating the future.

The CISCE was an Expo with distinct features. It featured five exhibition areas for the industrial chain covering smart cars, green agriculture, clean energy, digital technology, and healthy life and a supply chain service exhibition, as well as six thematic forums and 360 supporting events. Representatives from 90 countries and regions and relevant international organizations used the platform to enhance communication, deepen cooperation, and seek development.

The CISCE has linked the upper, middle and lower reaches of the industries. 515 Chinese and foreign businesses and institutions took part in the Expo, which showcased advanced technologies and products as well as future development trends across the industrial chain. It was also a horizontal show of services provided by financial, logistics, and platform companies. Exhibitors of various industrial chains and supply chain service belong to the same “chain” like members of a big family. It was the impression of exhibitors that the quality of exhibitors, the number of professional audience and the outcomes had all exceeded expectations. Unlike traditional exhibitions where most exhibitors are mostly homogeneous and thus competitive in nature, the businesses and institutions participating in the Expo were potential cooperation partners. As a result, through exchanges at the Expo, they had expanded their circle of friends along the industrial chain, extended the networks of partners in the supply chain, and pooled driving force for the innovation chain. A large percentage of the letters of intent were reached among exhibitors.

The CISCE has integrated big, medium and small businesses. At the Expo were 53 Fortune 500 companies, 57 top Chinese companies, and 25 top 500 Chinese private businesses as well as “hidden champion” businesses that enjoy certain niches and “small but smart” SMEs. Companies in either leading or supplementing positions supported each other and formed close partnerships facilitating each others success. For instance, Apple participated in the event together with three Chinese partners with over 10 years of cooperation. In addition, the Expo was both highly professional and cross-sector. For example, vehicle manufactures of the smart car chain have reached letters of intent with many SMEs belonging to the digital technology chain.

The CISCE has promoted coordination between production, teaching, research and application. The Expo, combining both scientific findings and actual scenarios of application, not only invited Chinese and foreign businesses, but was also open to research institutes, universities and colleges, and the general public. It brought together sector organizations of various industrial chains, global leading companies, and renowned experts and scholars to share the latest research findings and analysis on future development trends, explore new routes to enhancing industrial and supply chain cooperation and facilitate the translation of innovative technologies into real results.  Nearly 700 researches from the Chinese Academy of Science and over 15,000 teachers and students from 13 institutions of higher learning visited or participated in the Expo, which brought the academic community face to face with the entrepreneurs where they shared their wisdom and ideas and explored opportunities for cooperation and set up bridges for highly efficient communication between the industrial, academic, and research communities.

The CISCE has deepened interactions between Chinese and foreign businesses. It has built a platform of cooperation for various players of global industrial chains. Chinese and foreign exhibitors demonstrated fruits of industrial and supply chain cooperation. For instance, GE and Sinopharm established a joint booth and launched their joint venture. Qualcomm Incorporated and China Mobile, Xiaomi, and iQIYI showcased their success stories of cooperation. More importantly, Chinese and foreign exhibitors used the industrial and supply chains as a media to present themselves and deepen cooperation, making the supply chain one of win-win cooperation. 83.2% of exhibitors believed that the Expo has effectively facilitated global industrial and supply chain cooperation. CCPIT joined hands with its counterparts from Brazil, South Africa, the ROK, Türkiye, and Hungary in organizing a series of trade events, which greatly promoted trade cooperation.

The CISCE was an Expo with great highlights, with uniqueness in terms of exhibition design, theme, logic, content and approach, which can be summarized as creative, international, professional and green.

Creative. The Expo set its eyes on the “chains”. In terms of the approach to exhibition, its focus was on the exhibition of “chains” and then the total ecology rather than particular products. It terms of the expected outcomes, its focus was on promoting long-term cooperation and shared development of businesses. It had expanded the “small logic” of the business growth in one industrial chain to the “big logic” of the development of the whole industries they belong to, which created new modes and new forms for exhibitions.

International. Foreign exhibitors account for 26% of the total, covering 55 countries and regions. American and European businesses took up 36%. Companies from South Africa, Canada, Japan, Vietnam, the African Union, the Arab League, Portuguese-speaking countries, and Latin American and Caribbean countries set up country-specific or regional booths. Exhibitors from BRI partner countries accounted for nearly half of the total. To demonstrate the open and inclusive nature of CISCE, CCPIT provided free booths for the Laos, Rwanda, Timor Leste and some other least developed countries. A delegation comprising representatives of 18 international organizations including the United Nations Development Programme, the World Intellectual Property Organization, and the International Labor Organization visited the exhibition.

Professional. The five industrial chains and the supply chain service exhibition, all focal points of attention for the business community, cover long links and are of fundamental and guiding significance. Through digital empowerment, scenario presentation, diverse interactions, and immersive experience, a panorama view of the supply chain was presented, making the abstract supply chain visible, understandable, and touchable. The Expo also established work stations for intellectual property and legal services and windows for intellectual property patent and trademark application, which saw zero complaint concerning the infringement on intellectual property rights. CATL and Dalian Ketian successfully got the application for patent and trademark registration approved on spot. This was the first time that an exhibitor had applied for intellectual property at a domestic exhibition, thus realizing “fast protection” for the intellectual property rights of exhibitors.

Green. In the whole process of defining the underlying logic for the exhibition, soliciting exhibitors, and exhibition hall development and operation, the CISCE has highlighted green, low-carbon and sustainable development. It launched the “zero carbon Expo” initiative, tailor-made carbon-neutrality solutions such as carbon credit and carbon inclusiveness. 100% green power was made possible through green power transactions among provinces. Green energy and the digital economy became key areas for the exhibitors and professional audiences. Volvo and Yunnan Aluminum Co. Ltd. signed an MoU on sustainable aluminum value chain. New energy cooperation agreements were reached such as that reached between ITG and JA Technology.

The CISCE was an Expo was fruitful outcomes. It built a brand new platform of openness for businesses from various countries to strengthen industrial and supply chain cooperation. It was a vivid demonstration of Chinas willingness to increase market opportunities, better align rules and regulations with international standards, stimulate greater driving force for innovation and create more opportunities for inclusive cooperation, sending the clear signal that China will get more deeply involved in building global industrial and supply chains. The Expo attracted 150,000 visits. There were as many as over 20,000 visitors at one single point. Delegations of over 100 ministries and local governments followed each other closely in visiting the Expo. According to incomplete statistics, relevant parties signed over 200 cooperation agreements and letters of intent, with a worth of over RMB 150 billion Yuan. A large number of Chinese and foreign businesses have expressed the wish to participate in the second CISCE. 44 exhibitors have already signed letters of intent for participating the 2024 CISCE.

Remarkable results in trade promotion. A system for matching suppliers and buyers was developed. A series of events were held for trade negotiations, supply-demand matching and on-spot procurement to facilitate cooperation between Chinese and foreign exhibitors. Targeted matching before the Expo was followed by in-depth exchanges at the Expo and follow-ups after the Expo. A third of exhibitors have got to know over 10 supply chain cooperation partners through the event. Nearly 90% of the exhibitors believed that the CISCE effectively promoted their cooperation with businesses in the upper, middle and lower reaches of the industrial chain and with supply chain service businesses.

Eye-catching results in investment cooperation. The 2023 Beijing-Tianjin-Hebei Industrial and Supply Chain Conference held a series of field visits to industries, launched a cross-region industrial chain map and a report on coordinated development of the region, thus building a new window and platform for coordination and cooperation between them.  Inner Mongolia, Liaoning, Hubei, Sichuan, Guizhou, Xinjiang, and Shenzhen held events to promote their featured products, creating platforms for global promotion and resource pooling.

Excellent results in pooling resources for innovation. Focusing on high-quality development, the CISCE has attracted the most representative, special and excellent champion businesses of the industrial chains. Highlighting scientific innovation, model innovation, and business form innovation, the Expo facilitated technological sharing and project matching. 47 Chinese and foreign businesses showed their new products, new technologies and new services for the first time at the Expo, which greatly promoted in-depth integration of the innovation chain, the industrial chain, the supply chain and the value chain.

Pragmatic and effective exchanges. Five members of the Chinese Academy of Science, the Chinese Academy of Engineering, over 90 representatives of international organizations, senior management of the Fortune 500 businesses and leading companies in various sectors attended thematic forums and shared their insights and “CISCE wisdom”. CCPIT held the first Trade Promotion Think Tank Forum and released the Report on Global Supply Chain Promotion to share research results and seek win-win cooperation with the business and academic community. Many businesses leading in their industrial chains showed their complete supply chains for the first time at the Expo. SMEs presented their special products and services. The vast number of exhibitors used the platform to increase understanding, share ideas, trade products, and strengthen their weak links.

Continuing to Deepen Industrial and Supply Chain Cooperation Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era

Over the past 70 plus years since its founding, grounded in China while facing the world, CCPIT has played an important role in building close bonds between Chinese and foreign businesses, facilitating international trade, and promoting the development of state-to-state relations. In the new era and on the new journey ahead, guided by Xi Jinping Thought on Socialism with Chinese characteristics for a New Era, we will continue to follow through on the major outcomes of the 20th National Congress of the CPC, stay firmly grounded in the “two imperatives”, keep in mind matters of national importance, focus on serving national strategies and serve Chinese and foreign businesses. We will continue to make a success of the CISCE, provide more global public goods, safeguard the resilience and stability of the global industrial and supply chains and shoulder our responsibility in building a modern socialist country and in building a community with a shared future for mankind.

We will strive for safe and stable industrial and supply chains. Security and stability is the important precondition for realizing development. Aimed at combining trade and investment promotion with industrial development, CPPIT has made use of professional exhibitions to tap their potential for pooling industrial chains, and built platforms for international exchanges and cooperation that match supply with demand, link businesses in the upper, middle and lower reaches and bring together industrial and supply chains. In so doing, we contribute to building a modern industrial system and improving the resilience and security of Chinas industrial and supply chains. We have been working to promote transformation and upgrading of foreign trade-oriented businesses, help them make the best use of trade rules and practices, cultivate a number of highly innovative leading companies and enhance the competitiveness of SMEs. We have organized overseas trade exhibitions, nurtured overseas brand names, and expanded the size of our exhibitions. In the process, we have focused on matching supply with demand, and helping businesses focus on increasing exports of strength products and to key markets. We will continue to provide the world with quality China-made products, stable Chinese supplies, and help build secure and resilient global industrial systems.

We will continue to build smooth and efficient industrial and supply chains. General Secretary Xi Jinping delivered a keynote speech at the third Belt and Road Forum for International Cooperation in which he announced eight steps for supporting high-quality Belt and Road cooperation, bringing the BRI to a new stage of high-quality development. CCPIT will continue cooperation and coordination with relevant parties to follow through on the outcomes of the third BRF and the Belt and Road CEO Conference and help deliver the signed projects on the ground at an early date. We will work with our partners to deliver real results through our 393 bilateral and multilateral mechanisms for business cooperation, and promote bilateral, regional, and multilateral cooperation. Within the frameworks of China-ASEAN, China-Central Asia, China-Africa, China-Arab, and China-CELAC cooperation, we will organize high-level exhibitions and forums. We will work for the implementation of free trade agreements including the RCEP, usher in greater results in Belt and Road trade cooperation, and promote cooperation in new areas such as health, the green economy, the digital economy and innovation, which will improve the quality of global industrial and supply chains.

We will work to build open and inclusive industrial and supply chains. Openness and cooperation is an important driving force for development and progress. Inclusiveness and sustainability is the important guarantee for shared prosperity. As an important window for Chinas opening up, CCPIT will build on our strength of linking the government with the business community, and connecting China with the world, to smooth out supply and demand, improve the quality of trade and investment cooperation, and help businesses get more deeply involved in the system of global industrial and supply chains. We will support overseas businesses to China for important exhibition and trade promotion events, facilitate the import of quality consumer products, advanced technologies, and important equipment, to expand room for the development of global industrial and supply chains. We will continue to give full play to the role of the Special Seminar of the CCPIT on Providing Services for Foreign-related Businesses, improve the existing mechanism for regular exchanges with multinational corporations and overseas chambers of commerce in China, and build a full-chain, one-stop, international business-related legal service system, with an eye to building market-oriented, law-based and first class business environment and bringing into fruition more quality foreign-funded projects.

We will continue to build mutually-beneficial industrial and supply chains. Industrial and supply chains are the most important global public goods, which calls for joint development, contribution, and governance of the international community. The business community is an important player in formulating international trade rules and in acting on the global governance of industrial and supply chains. The CCPIT has always taken upon itself to organize the Chinese business community to participate in the work of multilateral organizations and multilateral platforms. We have organized Chinese businesses to get deeply involved in the business community events under multilateral platforms such as APEC, G20, and BRICS as well as the work of international organizations such as the International Chamber of Commerce. These events have gone a long way in helping airing concerns about safeguarding and maintaining global industrial and supply chains, pooling consensus for cooperation, putting forward Chinese solutions that conform to Chinese interests and win international recognition, and enhancing international macro-policy coordination on industrial and supply chains, thus contributing to the sound development of economic globalization and the building of an open world economy.

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Ren Hongbin is Chairman of the China Council for the Promotion of International Trade