China International Supply Chain Expo: Opening Ceremony

Statement by Rebeca Grynspan, Secretary-General of UNCTAD

Your Excellency, Premier Li Qiang

Excellencies,

Ladies and gentlemen,

Dear friends,

It is my great honour and pleasure to join you remotely in this first edition of the China International Supply Chain Expo.

I am sure that this Expo will become a trailblazer in the field, in part due to its very novel approach, bringing together companies across entire supply chains, and ensuring collaboration in upstream, midstream, and downstream sectors.

This month in Beijing I met with Chairman of the China Council for the Promotion of International Trade, Ren Hongbin, who described this innovative, supply-chain focused structure in detail.

I was extremely impressed.

This sort of innovative approach to international business collaboration is today more needed than ever.

Globalization is a story that can be told in many ways.

It can be written through economic reports, historical essays, and political debates.

But the true story of globalization is written through supply chains. These intricate networks that span continents and oceans are the lifelines of the global economy, connecting producers, consumers, and markets in a complex web of interactions.

They are the real driving force that has brought humanity the closest it has ever been.

The historical force of globalization, however, is now undergoing a profound transformation.

We're transitioning from an era of “hyper-globalization”, characterized by unbounded flows of capital, goods, and information, to a new phase I am starting to call “poly-globalization”.

This emerging trend represents a more multifaceted and decentralized global landscape.

In this era, we are witnessing a shift towards regional trade patterns, the return of industrial policy, and the growing incursion of geopolitics into trade and multilateral action.

All of these factors are profoundly affecting supply chains. In some cases, it is making them longer. According to a recent UNCTAD report, last year energy and food supply chains had the longest average distances on record partly as a result of the disruption in shipping routes.

But in other cases, supply chains are becoming shorter, especially at the regional level.

As intra-regional trade grows in importance in the delivery of high-value added goods and services, a new complex web of supply chains is starting to arise in regions such as Africa.

The emphasis on sustainable development is also reshaping supply chains.

We are increasingly seeing a push towards greener, more sustainable practices in production and logistics.

This shift is not just a moral imperative in the face of climate change, but also a strategic economic move.

Companies, ports, shipowners, and countries that invest in sustainable supply chains are positioning themselves as leaders in the future global economy.

In this era of poly-globalization, digitalization also plays a pivotal role.

Advanced technologies are making supply chains more intangible, and they are also transforming their management, making them more efficient, transparent, and resilient.

The use of big data, AI, and blockchain in logistics is not just a trend. It's becoming the backbone of modern supply chains, enabling real-time tracking, predictive analytics, and enhanced security.

Your excellencies,

This transformation of globalization and its impact on supply chains calls for a renewed commitment to multilateral cooperation and dialogue.

Not all countries can afford or compete in this new era of globalization if they go at it alone.

As we navigate these changes, international platforms like this Expo are crucial.

They provide a space for sharing best practices, forging new partnerships, and jointly addressing the challenges and opportunities that lie ahead.

In closing, allow me to again congratulate the organizers and wish this Expo the greatest success.

Let us use this Expo as a springboard to build the supply chains of a more interconnected tomorrow.

Thank you.