Understanding China GZ Conference drew attention to global supply chain security
On the morning of 26 October, Huang Kunming, Member of the Political Bureau of the CPC Central Committee, Head of Department of Publicity, started off the opening ceremony with reading the congratulation letter by President Xi and delivered a speech. Li Xi, Member of the Political Bureau of the CPC Central Committee, Secretary of Guangdong Provincial Party Committee, Ernesto Zedillo Ponce de León, former Mexican President, Chairman of the 21st Century Council, Liyong, Director-General of UN Industrial Development Organization, Zheng Bijian, Head of China Institute of Innovation and Development Strategy gave keynote speeches. Ma Xingrui, Governor of Guangdong Province host the conference. The followings speakers delivered speeches on panel discussions of the conference. Mario Monti, former Prime Minister of Italy, Gao Shangquan, Honorary Head of China Society of Economic Reform, Ma Kaishuo, Temporary Associate Professor of Asia Research Institute, National University of Singapore, Long Yongtu, Chairman of Centre for China and Globalization and Chief Negotiator of China's WTO accession, Martin Jacques, Senior Fellow at the Department of Politics and International Studies, Cambridge University, Zhen Yongnian, Professor of East Asia Institute of National University of Singapore, King Cheung, Founder and Chairman of the Board of Cedar Holdings, gave panel discussion speeches. Wang Chao, Chinese People's Institute of Foreign Affairs moderated the panel discussion.
Global supply chain security became the most talked about among the speakers in the panel discussion speeches. Both Long Yongtu and King Cheung gave special attention to this issue.
Long Yongtu pointed out that trade protectionism and unilateralism destory global industrial chain. It is important to safeguard its safety, innovativity and integrity. He suggested that China supported leading companies to better guide the industry they belong to and back innovative growth of SMEs. In this way, global industrial chain and industry system would further grow and economic globalization leap onto a higher level.
As a Guangzhou homegrown private company listed on the Fortune Global 500 List, Cedar Holdings has been actively expanding commodities industrial chain across the globe. According to King Cheung, economic globalization is an irreversible trend of today's world, and globlal supply chain is an indispensable pillar to the economic globalization.
He thought that the world economy was entering into an era driven by global supply chain. In the past 10 years, intermediaries like raw material commodities has been increasing its share in the total amount of world trade volume. It excceded 70% by the end of last year. This means that most globally traded products are manufacturing jointly by dozens of or even hundreds of coroporations in different countries. Tens of thousands of production nodes are connected via the global supply chain. "Just as economic globalization makes the world economy more integrated than ever before, the global supply chain is indispensable in connecting the world economy. It facilitates the formation of an interconnected and interdependent global economy."
King Cheung also added that the arising anti-globalization concept not only continued to attack the world economy order centred on free trade, but also exert substantial damages to global supply chain order based on connection. The escalating trade protectionism and unilateralism have worsened the risk of global supply chain cutoff.
He thought that as far as the global economy is concerned, China is the second largest world economy, a main driver of global free trade, and an important power of maintaining global supply chain order. Chinese corporations form the largest and most down-to-earth group of practitioners. As for the national strategies, a key manufacturing power must has its own global supply chain system. In the past, Chinese corporations suffered great losses and paid exorbitant costs in global competition because of supply chain cutoff. Currently, Chinese manufacturing industry has occupied the world's No. 1 spot by size. How to build on this strength to improve resilience and security of supply chain system as well as the connection between China and the rest of the world remains as weaknesses to be urgently overcome.
In recent years, China has attached high importance to the issue of supply chain security and included it into national strategies. Report of 19th National Congress of CPC regards modern supply chain as a new source of growth and new driver. All the way from central government to local governments are rolling out policy to back industry development and encourage leading supply chain enterprises with global competitiveness.
Under such a circumstance, Cedar Holdings, as a commodities supply chain leader, is accelerating the go global drive and expanding the global commodities industrial chain and supply chain. “On the one hand, we step up our efforts in upstream mineral resources storage and exploitation. On the other hand, we integrate supply chain service and financial resources, improve supply chain financial service capability and devote ourselves in providing tens of thousands of SMEs in manufacturing sector with quality and secure supply chain service.” King Cheung also mentioned that Cedar Holdings had supply chain operations in Asia, Europe and Africa across the route of Belt and Road. Cedar Holdings is determined to become a leading commodities enterprise with global competitiveness in Guangzhou, Chinese equivalent of Glencore, as well as the foundation and blood of Made in China.
"Guangdong-Hong Kong-Macau Great Bay Area strategy brings new opportunities to innovative growth of Chinese supply chain sector. The industry clustering and development opportunities that come with the strategy, combined with the unique geographic position, industry base and business environment, together make Greater Bay Area the best platform for growing a supply chain sector with global influence." King Cheung called for more companies to work together towards the goal of building an open supply chain system with global competitiveness, and safeguard the world's free trade system featuring openess, equality, mutual benefit and win-win result.
Understanding China is co-organized by China Institute of Innovation and Development Strategy, Chinese People's Institute of Foreign Affairs and 21st Century Council. This international conference has been held for three consecutive years. The theme of the conference this year is New Globalization and China's New Round of Reform and Opening-Up. It was the first time the conference was held outside Beijing.
Article courtesy of Xinhua News Agency and Guangzhou Daily