November 27th (AMSP/CGTN) – – In the 2024 edition of the Global Supply Chain Promotion Report, key industries were specifically highlighted to assess the impact and transformation brought about by new technologies, business models, and innovative practices on the global supply chain. CGTN’s Aaron Liu spoke to Zhou Jinzhu, Director of the Department of International Trade Research at the China Council for the Promotion of International Trade (CCPIT), to gain insights into these developments.
“In last year’s inaugural Global Supply Chain Promotion Report 2023, we introduced the Global Supply Chain Promotion Analysis Model, which focuses on five key aspects. One of these is the role of technological progress in enhancing quality, upgrading, and improving the efficiency of the global supply chain. This year, we continue to emphasize leading-edge industries. For example, we are focusing on new-generation semiconductor materials within the digital economy sector and advancements in AI technology,” said Zhou Jinzhu, Director of the Department of International Trade Research Academy at the CCPIT.
“We are also exploring cutting-edge technologies related to sustainable development, such as energy storage and flexible battery technologies. We have also created sub-reports corresponding to the six major industrial chains established at this year’s Global Supply Chain Expo: the Clean Energy Chain, Advanced Manufacturing Chain, Intelligent Automobile Chain, Digital Technology Chain, Healthy Living Chain, and Green Agriculture Chain. Our analysis delves into each of these six major industries individually,” she added.
“How does the report outline the global supply chain for the smart car industry, and what supply chain structures and dynamics does it reveal?,” Aaron Liu asked.
“In the smart car supply chain, particularly in the upstream segment focusing on power batteries, there is significant attention. The global production concentration for power batteries is increasing, with China, the U.S., and Europe now able to meet their production needs through local manufacturing. Moving to the midstream of the supply chain, we see intensified market competition and rising production cost pressures. This environment accelerates the survival of the fittest among car manufacturers, reflected in two key aspects. First, leading companies are becoming increasingly dominant in both scale and market advantage. Notably, Tesla and BYD are emerging as frontrunners among global power battery car producers, with their market share steadily climbing,” Zhou Jinzhu replied.
“What are the core foundational indicators used to construct the Global Supply Chain Promotion Index, and what innovations do these indicators introduce in measuring supply chain efficiency and their promotional effects?,” CGTN’s reporter asked.
“We have released a report and two indices, one of which is the Global Supply Chain Facilitation Index. This index is based on five major indicators: infrastructure connectivity, multilateral and bilateral trade rules, policies of major economies, technological upgrading and innovation, and financial services guarantees. For example, some countries are expanding their openness and creating favorable business environments, which reduces the costs associated with establishing global supply chains within their borders. Conversely, other countries may adopt protectionist policies, leading to decoupling and disruptions in the supply chain, which increase operational costs,” said Zhou Jinzhu.
“This year, we also introduced the Global Supply Chain Connectivity Index. For the first time globally, this index uses specific data to accurately assess the quality of global supply chain connections and the magnitude of disruption risks. The Global Supply Chain Connectivity Index has risen from 0.271 in 2014 to 0.731 in 2023, indicating that global supply chain connectivity is at a historical high. Our data shows that there is an inherent momentum toward connection within the global supply chain, and its current connectivity level is relatively strong historically,” said Zhou Jinzhu, Director of the Department of International Trade Research Academy at the CCPIT, underscoring that economic globalization reflects the will of the people.
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