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Officials, executives call for global supply chain stability

By Zhong Nan | China Daily | Updated: 2024-11-27 07:24
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Visitors view products displayed at a booth of CITIC Group during the second China International Supply Chain Expo, which opened on Tuesday and runs through Saturday in Beijing. The expo, with the theme "Connecting the World for a Shared Future", has gathered global industry leaders and experts and aims to promote global cooperation in industrial and supply chains. WANG JING/CHINA DAILY

Maintaining the stability of global supply chains is essential for addressing challenges confronting businesses worldwide, such as escalating costs, geopolitical tensions and rising protectionism, which could further fuel global inflation, government officials and business leaders said on Tuesday.

Delivering a keynote speech at the opening ceremony of the second China International Supply Chain Expo in Beijing, Vice-President Han Zheng said that China is willing to work with all countries to promote the establishment of an open world economic system and ensure the stability and smooth operation of global industrial and supply chains.

This year's expo, which runs through Saturday, has attracted over 620 Chinese and foreign companies, marking a 20 percent increase in the number of exhibitors compared with the first edition, according to the China Council for the Promotion of International Trade, the organizer of the event. The proportion of overseas exhibitors has climbed from 26 percent to 32 percent, it said.

Noting that the global business environment is currently facing numerous challenges, Peter Szijjarto, Hungarian minister of foreign affairs and trade, said that supply chain disruptions, geopolitical pressures and surging energy prices have created significant obstacles for the development of Hungary's economy.

"What we advocate for is interconnectedness, not separation. We hope that the East and the West can cooperate with each other and uphold the spirit of civilization and mutual respect to achieve win-win outcomes," said Szijjarto.

Dominic Barton, chairman of multinational mining company Rio Tinto, said that geopolitical tensions and protectionist policies have not only driven inflation growth in various countries, but also threatened the world's ability to address issues of common concern such as poverty and climate change.

China's manufacturing capabilities have significantly reduced the cost of clean energy, particularly for solar panels and high-end batteries, Barton said, underlining the need for cooperation.

Wood Mackenzie, a United Kingdom-based energy consultancy, estimated earlier this year that if Chinese clean energy technologies and products were excluded, the global energy transition would cost 20 percent more by 2050, requiring an additional $6 trillion.

Therefore, according to John Denton, secretary-general of the International Chamber of Commerce in Paris, it is essential for the global community to collaborate in ensuring a well-functioning multilateral trading system.

Sean Stein, incoming president of the US-China Business Council, said that over the past few decades, global supply chains have not only been the cornerstone of economic development, but also a key stabilizer for world peace and international cooperation.

Such interconnectedness has enabled the creation of resilient economies, supported innovation and generated employment opportunities, Stein said, adding that collaboration and development have benefited both China and the United States, as well as the whole world.

Federal Express, a US-based express transportation and logistics company, which is participating in the expo for the second time, announced earlier this month an increase in the frequency of international cargo flights between the US and Qingdao in Shandong province and Xiamen in Fujian province.

Global industrial and supply chains are rapidly evolving toward smarter and more sustainable systems, and as a key driver of global economic growth, China plays a pivotal role in this transformation, said Poh-Yian Koh, senior vice-president of FedEx and president of FedEx China.

China's foreign trade grew 5.2 percent year-on-year to 36.02 trillion yuan ($4.97 trillion) in the January-October period, according to the General Administration of Customs.

This robust performance underscored the country's pivotal role in ensuring the stable operation and resilient growth of global supply chains, Koh said.

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