Advancing International Cooperation in Industrial and Supply Chains

Safeguarding the resilience and stability of global industrial and supply chains provides a crucial guarantee for world economic development. Moreover, it aligns with the common interests of all countries. At its third plenary session, the 20th Central Committee of the Communist Party of China (CPC) stressed that it would “facilitate international cooperation in industrial and supply chains.” China is firmly committed to supporting and enhancing the multilateral trading system centered on the World Trade Organization (WTO) in order to ensure the smooth and stable operation of these chains.

I. A key strategic move for achieving mutually beneficial development

Over the past few decades, global industrial and supply chains have steadily expanded and become increasingly interconnected, thanks to the continued advancement of economic globalization. As integral links in this global chain of cooperation, all sides have gradually come to form a community with common interests and a shared future. This has fueled the rapid growth of the global economy. Advancing international cooperation in industrial and supply chains thus represents a key strategic move taken by the CPC Central Committee in response to the trends of the times and development imperatives.

A hallmark of all major economies is that their industrial and supply chains remain robust at critical junctures. Since the 18th CPC National Congress in 2012, China’s industrial system has undergone continuous improvement, and its capacity for sci-tech innovation has risen markedly. China now possesses the most comprehensive range of industrial categories and the most complete industrial supporting system in the world according to United Nations standards. It has ranked as the world’s largest manufacturer for 15 consecutive years, accounting for about 30% of global manufacturing value-added. However, despite its size, Chinese manufacturing is not yet strong enough, and though it is comprehensive, it is lacking in sophistication. In particular, China remains reliant on others for some core technologies in key fields. This further highlights the importance and urgency of enhancing the resilience and security of our industrial and supply chains. 

In the face of a global wave of technological and industrial development, countries are engaging in forward-looking planning, while breakthroughs in cutting-edge technologies are driving transformative changes across industrial chains. Advancing international cooperation in industrial and supply chains will help China seize strategic opportunities in the new round of technological revolution and industrial transformation. It will help improve the quality and efficiency of the supply system, generate new demand, and accelerate the development of new quality productive forces and a modern industrial system. All this will provide concrete support for high-quality economic development.

Collaboration and division of labor are the inevitable choices in social development. As isolation offers no way forward, openness is the right path to take. Since 2012, China has steadily integrated itself into the global industrial and supply chain system and achieved greater openness by expanding international cooperation. Today, China is a major trading partner for over 150 countries and regions. It has been the world’s largest goods trader for many consecutive years, and its standing as a major participant in two-way investment has been steadily enhanced. Through high-quality Belt and Road development, China has pursued deeper industrial cooperation with partner countries, providing a powerful boost to the efforts to upgrade industry and optimize industrial chains.

Efficient economic flows are contingent on the smooth circulation of production factors. By advancing international cooperation in industrial and supply chains, China will be able to promote interplay between domestic and international markets and resources. It will be able to participate more fully in the global industrial division of labor and cooperation in a wider range of areas, leaving it better placed in global innovation, industrial, supply, and value chains. Ultimately, by pursuing high-standard opening up, China will be able to create broader space for advancing Chinese modernization.

World Bank research indicates that a 1% increase in global supply chain participation boosts global per capita income by more than 1%. At present, changes unseen in a century are unfolding across the world at a faster pace. On the one hand, the historical trends of peace, development, cooperation, and mutual benefit remain unstoppable. On the other hand, however, the world has entered a new period of turbulence and transformation, marked by a backlash against globalization and a notable rise in unilateralism and protectionism. The stability of global industrial and supply chains has been undermined, and cooperation in these domains has been affected by a trend toward excessive politicization and securitization. Ensuring the smooth and stable operation of global industrial and supply chains is crucial for promoting healthy economic globalization and building an open world economy. Advancing international cooperation in industrial and supply chains will be conducive to safeguarding the diversity and stability of the international economic landscape and economic and trade relations. This will also support the implementation of the Global Development Initiative, the Global Security Initiative, and the Global Civilizations Initiative, thereby facilitating the modernization of various countries and achieving shared prosperity through peaceful development and mutually beneficial cooperation.

The CITIC Dicastal Lightweight Aluminum Autoparts Integrated Solution on display in the Advanced Manufacturing Chain exhibition area of the Second China International Supply Chain Expo, Beijing, November 27, 2024. As the world’s first national-level exhibition focused on supply chains, the expo has helped effectively connect upstream, midstream, and downstream sectors; bring together large, medium, and small enterprises; cement collaboration between industries, universities, research institutes, and end-users; and facilitate interactions between Chinese and international businesses. PHOTO BY XINHUA REPORTER ZHANG CHENLIN

II. Working with all parties to develop closer partnerships

Against a backdrop of intensifying rivalry between major countries, growing geopolitical tensions, and a weak global economic recovery, all sides are increasingly faced with the practical and pressing necessity of consolidating and enhancing cooperation in global industrial and supply chains. China has redoubled its efforts to promote such cooperation. To continue providing the world with high-quality manufacturing and stable supply from China, we have put forward relevant initiatives and declarations at various multilateral forums, including the Shanghai Cooperation Organization, BRICS, APEC, and the G20. China and Indonesia, together with other countries, have launched the Initiative of International Cooperation on Resilient and Stable Industrial and Supply Chains. China has also hosted key events such as the International Forum on Resilient and Stable Industrial and Supply Chains. These efforts have provided Chinese insight, input, and strength to ensure the smooth and stable operation of global industrial and supply chains.

Promoting economic and trade cooperation to create more space for industrial and supply chain development

On a global level, both countries and enterprises need to engage in collaboration and the division of labor to create complementary advantages, optimize the allocation of resources, and improve economic efficiency. This is an objective law that underpins global economic cooperation and development, and it represents the basic logic driving stronger industrial and supply chain cooperation among all countries. Only by continuously promoting economic and trade cooperation can we ensure the smooth and stable operation of these global chains and enable all countries to share more fairly in the benefits of economic globalization. 

Since 2012, we at the China Council for the Promotion of International Trade (CCPIT) have focused on connecting governments and businesses, linking domestic and international markets, and facilitating both supply and demand. To this end, we have significantly expanded our trade and investment promotion functions and made every effort to serve as a bridge for cooperation between China and other countries. Our goal has been to foster stronger interplay between domestic and international markets and resources and help all countries better integrate into the global industrial and supply chain system. 

To promote long-term cooperation and shared development among enterprises from around the world, the CCPIT has organized a host of major economic events, including the Belt and Road CEO conference, the Conference of Chinese and African Entrepreneurs, and the China-ASEAN Business and Investment Summit. We have made meticulous efforts to organize overseas and outbound trade exhibitions, implementing over 1,100 such projects nationwide in 2024, with participation from over 50,000 enterprises. Through organizing overseas trips for more than 1,000 business missions, the CCPIT has helped businesses increase exports and expand into international markets. We have also enhanced our foreign investment services. This has included establishing a nationwide task force to serve foreign-funded enterprises by identifying solutions to a range of legitimate concerns. We have organized local tours in China for foreign-funded enterprises and facilitated the implementation of high-quality foreign investment projects. In doing so, we have supported foreign enterprises in coming to China for global success.

Improving commercial legal services to help safeguard industrial and supply chain cooperation

In recent years, the landscape of international economic and trade cooperation and competition has undergone profound changes. Risks and challenges are now far more common for enterprises engaged in international operations due to greater instability, uncertainty, and unpredictability. According to a report by the WTO, the value of trade covered by 169 new trade-restrictive measures introduced by its members between October 2023 and October 2024 is estimated at US$887.7 billion—a 163% increase compared to the US$337.1 billion recorded in the previous 12 months. This reflects a growing tendency toward inward-looking and protectionist trade policies among countries. Furthermore, some countries have severely disrupted global industrial and supply chain cooperation by adopting a series of trade restrictions against China. We have thus made it an urgent priority to support enterprises in their international operations by guiding and assisting them in safeguarding their rights and interests through law-based thinking and approaches. 

Based on our core mission of serving Chinese and foreign enterprises, the CCPIT has actively explored innovations in areas such as international commercial mediation, trade arbitration, and intellectual property services, to facilitate industrial and supply chain cooperation among enterprises worldwide. Since 2012, we have handled over 50,000 commercial mediation cases involving more than 100 billion yuan, processed over 40,000 commercial and maritime arbitration cases, and accepted more than 600,000 patent and trademark applications from Chinese and foreign enterprises. These efforts have helped effectively safeguard enterprises’ legitimate interests. In addition, we have carried out corporate compliance initiatives, including a campaign to strengthen compliance in key industrial and supply chains. We have provided compliance guidance and risk assessments for over 20,000 enterprises engaged in international cooperation, helping them build robust legal and security frameworks to protect overseas interests.

Hosting the China International Supply Chain Expo to create a platform for industrial and supply chain cooperation

Industrial and supply chains are vital global public goods. History and the present reality tell us that all countries stand to benefit when international cooperation in these chains is kept stable and steadily advanced, and all countries pay the price when this cooperation is hindered or hits a standstill. As an example, consider China-US cooperation in this area. Despite ups and downs in relations, the volume of bilateral trade between China and the US exceeded US$680 billion in 2024. Over 80% of Apple’s 200 major suppliers have factories in China, reflecting just how intertwined our industrial and supply chains are. In the current landscape, two key issues of general concern to the international community have emerged: how to continue shoring up, expanding, and strengthening industrial and supply chains across the world, and how to efficiently build innovation chains that are well-aligned with industrial chains. 

The inaugural China International Supply Chain Expo (hereinafter the Supply Chain Expo) in November 2023 was the first national-level exhibition focused on supply chains ever held anywhere in the world. It functions to promote trade, foster investment cooperation, aggregate innovation, and encourage learning and exchange. It aims to connect upstream, midstream, and downstream sectors; bring together large, medium, and small enterprises; coordinate collaboration between industries, universities, research institutes, and end-users; and facilitate interactions between Chinese and international businesses. The ultimate goal of the Supply Chain Expo is to see all parties working together to foster closer partnerships in global industrial and supply chains. The second edition of the Supply Chain Expo, which took place in November 2024, attracted 620 enterprises and institutions from 69 countries, regions, and international organizations, with overseas exhibitors accounting for 32% of the total. According to available data, over 210 cooperation agreements and letters of intent were signed during the expo, with a total value of more than 152 billion yuan. During the event, the CCPIT also released its Global Supply Chain Promotion Report 2024. Alongside the report, two groundbreaking new indices were also unveiled: the Global Supply Chain Connectivity Index (GSCCI) and the Global Supply Chain Promotion Index (GSCPI), which will serve as a valuable reference for analyzing global supply chain trends. 

Through the medium of supply chains, the Supply Chain Expo has created a bridge for industrial integration, innovation promotion, and market connectivity between China and the rest of the world by linking up global enterprises, products, and services. It has become a new platform for opening up that is driving mutually beneficial cooperation between China and the world.

The Zhejiang-Serbia Trade and Investment Forum, jointly hosted by the Zhejiang Council for the Promotion of International Trade and the Chamber of Commerce and Industry of Serbia, Belgrade, Serbia, June 28, 2024. From June 26 to July 3, 2024, the Zhejiang Council for the Promotion of International Trade led an economic and trade delegation to Serbia and Romania for a series of trade and investment talks. CHINA COUNCIL FOR THE PROMOTION OF INTERNATIONAL TRADE

III. Making new contributions to the promotion of international cooperation in industrial and supply chains

At present, a new round of technological revolution and industrial transformation, as exemplified by developments in information technology, artificial intelligence, and new energy, is advancing at pace, and green and digital development has become the overarching trend in the transformation and upgrading of industrial and supply chains. At the same time, a small number of countries are adopting policies of “decoupling” and of “building small yard and high fences,” and multinational corporations are gradually shifting their focus from pursuing cost and efficiency to balancing efficiency and security. Reshoring locally and friendshoring within closed circles have emerged as trends in global industrial and supply chains. China is more than a participant and beneficiary of global industrial and supply chain cooperation; it is also a committed defender and promoter of such cooperation. That is because building resilient, efficient, and dynamic global industrial and supply chains aligns with the trends of the times and serves the interests of all.

Developing stable and secure industrial and supply chains

Security and stability are vital foundations for development. As a critical link in global industrial and supply chains, China has a pivotal role to play in making the global industrial system more resilient and secure. We will better align the promotion of trade and investment with industrial development. To amplify the positive outcomes from the Supply Chain Expo, we will work with relevant international organizations, government departments, and business associations to host events focused on industrial and supply chain cooperation, share our successful practices in international cooperation in this regard, and support Chinese enterprises with a global vision in promoting opening up and cooperation in these chains. All this will ensure that China steadily advances toward the medium-and high-end of global industrial, supply, and value chains. 

We will build platforms to promote exchanges and alignment among research institutes, business entities, and financial institutions. We will facilitate the integrated development of innovation chains, industrial chains, and supply chains and guide enterprises in carrying out industrial chain planning with a focus on the development of new quality productive forces. These efforts will help enhance the security and resilience of China’s industrial and supply chains. We will optimize our specialized intellectual property services. This will see us better leveraging patents, trademarks, and geographical indications to drive economic development through innovation, brand building, and the development of specialty products. We will guide and assist enterprises in responding to unreasonable foreign trade restrictions and improve systems for the protection of China’s overseas interests and for early warning, prevention, and control of risks. We will refine the working mechanisms for promoting corporate compliance and help boost the capacity of enterprises to assess and respond to security risks in industrial and supply chains.

Developing smooth and efficient industrial and supply chains

Economic growth will only be sustainable if we can ensure a stable supply of production factors, seamless economic flows, and efficient allocation through orderly and well-connected global industrial and supply chains. As a key driving force for global interconnectivity, China has, in recent years, steadily taken eight major actions for high-quality Belt and Road cooperation, promoting both “hard connectivity” through infrastructure development and “soft connectivity” through the formulation of rules and standards and refined practical cooperation mechanisms for industrial and supply chains. All this has opened up new space for achieving a higher standard of mutually beneficial development that ensures greater resilience and sustainability. Going forward, we will work to further refine the mechanisms for economic and trade cooperation under the Belt and Road Initiative, consolidate the foundations of cooperation, and create new opportunities for mutually beneficial development. We will support enterprises in implementing the outcomes reached at the Belt and Road CEO Conference. 

We will strengthen multilateral and bilateral mechanisms for promoting business cooperation. We will host events for the business community through meeting mechanisms for China and ASEAN countries, China and Latin American countries, China and Arab states, China and Central and Eastern European countries, and China and Portuguese-speaking countries. We will leverage mechanisms like the Belt and Road High-Quality Development Promotion Association of the Yangtze River Delta and the Alliance of the Chambers of Commerce and Industry of the New International Land-Sea Trade Corridor to guide enterprises in actively participating in the development of overseas industrial parks. We will also promote cooperation between Chinese and foreign enterprises in domains such as green development, digital economy, artificial intelligence, finance, and energy, work to develop cooperation brands with international influence, and keep striving to improve the quality, efficiency, and dynamism of global industrial and supply chains. 

Developing open and inclusive industrial and supply chains

Openness and cooperation are important forces for development and progress. China is a key promoter of common global openness. With its complete industrial system and enormous market, it can facilitate resource allocation on a vast scale and provide a broad stage for global industrial and supply chain cooperation. With a focus on stabilizing foreign trade and investment, we will enhance both the quality and level of trade and investment cooperation, helping Chinese and foreign enterprises to work in closer concert with a view to leveraging complementary strengths and achieving shared development. We will make meticulous efforts to organize overseas and outbound trade exhibitions, work for even better outcomes from a new round of overseas trips for more than 1,000 business missions, and coordinate our efforts to help enterprises expand into international markets with those to optimize the industrial layout in the global economy. 

To ensure further progress in fostering a world-class business environment that is market-oriented, law-based, and internationalized, we will consolidate and expand the functions of the nationwide task force for serving foreign-funded enterprises and improve the mechanisms for maintaining regular communication and exchanges with foreign business associations and foreign-funded enterprises in China. We will also facilitate the implementation of high-quality foreign investment projects and support foreign-funded enterprises in collaborating with upstream and downstream enterprises in industrial chains. We will strengthen our public services for going global, providing tailored guidance and encouragement to Chinese enterprises seeking to expand overseas investment and cooperation. We will collect timely information concerning the difficulties and demands of overseas investment entities and take steps to ensure these issues are addressed. Enterprises will receive support in developing well-conceived and orderly cross-border operations. We will also guide them in accelerating their transition to green and low-carbon development and promote deeper international cooperation in green infrastructure, energy, transportation, and other fields, so as to facilitate green development across the entire industrial chain.

Developing mutually beneficial industrial and supply chains

We need to build a global industrial and supply chain system that enables the full participation of all countries based on their comparative advantages and guarantee equal rights, opportunities, and rules for every country in international economic cooperation. This is crucial for maintaining the stability of industrial and supply chains. Leveraging our functions as an application-oriented think tank, we will step up our analysis and evaluation of openness and cooperation in global industrial and supply chains with a focus on hot topics such as the stability of foreign trade and investment and Belt and Road cooperation, as well as issues in frontier fields such as the digital economy, artificial intelligence, and green development. We will play a leading role in business community events organized through multilateral platforms and work to enhance our voice and influence in international organizations such as the WTO, relevant UN agencies, the Bureau International des Expositions, and the International Chamber of Commerce. On this basis, we will strive to forge broader consensus for cooperation, encourage more enterprises from developing countries and small and medium-sized enterprises to deeply engage in global value chains, and promote more dynamic, resilient, and efficient global industrial and supply chains.

Ren Hongbin is Chairman and Secretary of the CPC Leadership Group, China Council for the Promotion of International Trade.

(Originally appeared in Qiushi Journal, Chinese edition, No. 4, 2025)