China manufacturing: tech can keep supply chain risks in check, expo panellists say

Name: Chinese premier says Beijing opposes cutting off supply chains amid calls for decoupling
Uploaded: 2023-11-30T03:00:13.000Z
Duration: 1 min 1 s
Description: Chinese premier says Beijing opposes cutting off supply chains amid calls for decoupling

Experts and insiders at supply chain panels have brought up technology as a means for China to bypass attempts at ‘de-risking’ manufacturing linkages

Green energy, an expected source of future economic growth, cited as one area where China can advance quickly up the value chain and secure its position

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Forum participants at China’s first International Supply Chain Expo emphasised the importance of tech in keeping manufacturing linkages secure. Photo: EPA-EFE

Luna Sunin Beijing

Published: 11:00am, 30 Nov 2023

China is seeking to leverage its technical advancements, especially in strategic industries such as new energy and smart agriculture, to solidify its position in the global supply chain and counter the West’s plans for de-risking, global executives and industry experts said.

Panellists discussed the topic in detail at forums held on Tuesday as part of the inaugural China International Supply Chain Expo in Beijing, a state-backed event affirming the country’s role as a destination for global manufacturers. Efforts to attract foreign investors back to the country – and keep those who remained – have become pronounced in the wake of the pandemic and unpredictable geopolitical shifts.

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Chinese premier says Beijing opposes cutting off supply chains amid calls for decoupling

Companies and governments alike are seeking a more resilient and secure supply chain arrangement, participants said, with technological changes being one of the fundamental drivers of supply chain adjustments.

“Europe, the United States, Mexico, other countries, they are all embracing a large number of Chinese suppliers and technologies by establishing factories, hiring local talent, and implementing the Shenzhen model of operation,” said Chris Pereira, CEO of North American Ecosystem Institute, referring to the south China city known for its embrace of entrepreneurship.

As the world’s largest energy producer and consumer – and, consequently, the world’s biggest new energy vehicle market – China also has an opportunity to use its green transition to jump ahead in the global value chain.

In the next five to 10 years, we will witness the emergence of multinational Chinese enterprises

Jean Lu, Standard Chartered

The China Council for the Promotion of International Trade, organiser of the expo, listed smart vehicles, green agriculture, clean energy, digital technology and pharmaceuticals as the five major factors reshaping the global supply chain.