In recent years, slowing or even reversing globalization has brought the issue of resilience and security of supply chains into the spotlight. Many advanced economies have turned their attention to reshoring, or more recently, friend-shoring. For example, the US has recently launched the Indo-Pacific Economic Framework for Prosperity (IPEF) and the US-Taiwan Initiative on 21st Century Trade. In the meantime, the rapid development of the digital economy and the need for low-carbon transformation have also had a profound impact on the pattern of global trade and supply chains. How will these trends affect China’s foreign trade and supply chain security? How can China foster new competitiveness during the process of supply chain reshaping?
To answer these questions, CF40 held a Youth Forum on June 16, 2022 with the theme New Trends of Globalization and Supply Chain Reshaping.
The seminar started with a speech titled New Trends of Globalization and Supply Chain Reshaping by Dr. Xu Qiyuan, convener of CF40 Youth Forum and Deputy Director of the Institute of World Economics and Politics at the Chinese Academy of Social Sciences (CASS). Following Dr. Xu was Ms. Shan Hui, Chief China Economist at Goldman Sachs, who delivered a speech themed China, Trade, Supply Chains. Giving comments on the speeches were Mr. Long Guoqiang, Member of CF40 Academic Committee and Vice Minister, Development Research Center of the State Council and Mr. Li Keping, CF40 Advisor and former President of China Investment Corporation.
The second half of the seminar featured an informative and candid discussion joined by all participants. The seminar ended with responses from the keynote speakers to questions raised during the discussion.
According to the experts at the seminar, changes in globalization and supply chains will have more profound impact on China in the long-term, placing it in an increasingly complex environment that fosters both challenges and opportunities. The experts believe that essentially it’s the market and businesses that drive the process of supply chain reshaping. Given this background, four policy suggestions were raised. First, China should forge a friendly international environment by strengthening partnership with ASEAN countries. Second, the relocation of low-end industries to ASEAN countries should be taken as an opportunity for industrial upgrade in China, and the latter should focus attention on enhancing its competitiveness in capital- and technology-intensive industries. Third, the country must grasp the strategic opportunity brought by digitalization and green transformation, two factors that will largely determine whether China can realize industrial upgrade. Fourth, China should fully leverage its advantages, such as a huge market, low manufacturing cost and high investment returns, while continuously improving the business environment.
Also attending the seminar were Chen Wenhui, Vice Chairman of National Council for Social Security Fund of China; He Jianxiong, former Executive Director for China at the IMF; Xiao Gang, CF40 Non-resident Senior Fellow and former Chairman of CSRC; Ryan Song Yuesheng, Vice Chairman and Chief Executive of Hang Seng Bank (China) and Zhou Yu, Deputy Director-General of the International Department at the PBC, among other experts in the field.
The seminar was moderated by Wang Bijun, CF40 Youth Forum convener and Editorial Director of International Economic Review published by the Institute of World Economics and Politics, CASS.