Although the restructuring of the global industrial chain poses challenges for many Chinese firms, it also brings opportunities, according to experts attending the 2nd Global Economic Development and Security Forum at the ongoing Boao Forum for Asia.
Anti-globalization is affecting the global industrial chain, whereby economic benefits give way to political interests, Shi Zhanzhong, director of the Antai College of Economics & Management at Shanghai Jiao Tong University, said at the forum in Changsha, central Hunan province.
Europe and the US are retrieving a number of high-end manufacturing industries, Shi said. This goes against economic rules and affects the economic benefits of the global industrial chain layout.
Chinese companies have taken many countermeasures, both active and passive, to withstand the anti-globalization trend, said Yang Yudong, editor-in-chief of Yicai, citing a report on the globalization of Chinese firms recently released by Yicai.
In the last reorganization of the world’s industrial chain in the 1980s, China was the biggest beneficiary, Yang said. But this time round, it is the party that is most affected as the country’s market and investment trends have changed greatly.
Chinese businesses are expected to build on the dividends derived from the last round of restructuring to form new competencies and become more competitive, said Yang. This time, there will be big improvements in terms of institutional reform, opening-up and science and technology, including by engineers and entrepreneurs.
Large aircraft, new energy vehicles, consumer electronics and other fields are faring well despite the shifts, said Xiao Xukai, chairman and general manager of Zhuzhou Huarui Precision Cutting Tools. This gives Computer Numerical Control tool makers an opportunity to enter the high-end global industrial chain.Golden Concord Holding’s products are available across the world and the solar product manufacturer is now expanding its overseas production capability, said Assistant Vice President Song Hao. Despite constant challenges, the PV industrial chain is getting stronger and stronger.
There is no need to be concerned about the outflow of low-end links in the industrial chain, said Shi. China should become more self-reliant in terms of its supply chain, master core technologies, take the lead in the global industrial chain and keep up with digitalization, going green and other trends.