US execs eye opportunities in Chinese supply chains
Source: China Daily | 2024-07-31 | Editor:Ines
Ren Hongbin, chairman of the China Council for the Promotion of International Trade, addresses the US-China Economic and Trade Cooperation Forum in New York on July 29, 2024. MINLU ZHANG/CHINA DAILY
Supply chains were in the spotlight on the first day of a trade cooperation forum in the United States, as a Chinese business delegation made a reciprocal visit to the US following the conclusion of a key meeting of the Communist Party of China in Beijing.
The delegation, led by Ren Hongbin, chairman of the China Council for the Promotion of International Trade, was the first to visit the US after the third plenary session of the 20th Central Committee of the CPC.A business delegation from the US visited China last week.
The delegation, with members including business leaders from provinces such as Guangdong and Zhejiang, was also scheduled to attend meetings in Washington, DC, and the US state of Maryland.
Addressing the US-China Economic and Trade Cooperation Forum in New York on Monday, Ren said, "Strengthening supply chain cooperation between China and the US is conducive to keeping the global industrial and supply chains stable and unfettered, and will contribute to the economic growth of the two countries and beyond."
China and the US "enjoy strong economic complementarities and have highly interwoven interests", Ren said.
Lin Shunjie, chairman of the China International Exhibition Center Group, told China Daily that many foreign entrepreneurs have expressed a desire to restore and improve their global supply chain structures, which they believe "cannot be done without China".
"Only in China can they maximize supply chain efficiency, minimize costs, and optimize the structure," Lin said at the forum.
Many foreign companies were pleased to find that China has many innovative small and medium-sized enterprises that produce at low costs, significantly reducing supply chain expenses, Lin said.
He added that US companies had the highest presence among foreign enterprises attending the China International Supply Chain Expo last year.
The expo, the world's first national-level exhibition focusing on supply chains, was held from Nov 28 to Dec 2 in Beijing. About 515 companies from 55 countries, including more than 50 Fortune Global 500 companies, sent their CEOs to the expo.
Jonathan Webb, CEO of Packable, formerly Pharmapacks, told reporters at the forum that the company is the largest seller on Amazon and Walmart in the US, shipping 60,000 to 100,000 orders a day.
"We're here to connect with people who can help us integrate into the Chinese infrastructure, such as Temu and TikTok," Webb said.
China is crucial "because 90 percent of everything sold online comes from there", Webb said, adding that the US market has "a huge appetite" for Chinese-manufactured goods, from selfie sticks to EV charging stations.
All of those goods are being manufactured in China and brought to the US, said Webb, but "everyone is nervous about the tariffs. We need to figure out how to mitigate these issues."
Continuous cooperation between the US and China is essential for maximizing global supply chain benefits, he said.
Furthermore, "working with China creates jobs in the US" and stimulates the local economy, Webb said.
If tariffs are increased, many US innovators that manufacture in China might have to move to other countries, which could affect supply chains, he added.
Participants at Monday's forum also included Huang Ping, consul general of the Chinese consulate general in New York, and Peter Tichansky, president and CEO of the Business Council for International Understanding. More than 300 representatives from Chinese and US businesses and trade communities also attended.
A delegation from the board of directors of the US-China Business Council visited China last week after the third plenary session concluded on July 18. The delegation included FedEx President and CEO Raj Subramaniam, United Family Healthcare founder Roberta Lipson, Boeing Global President Brendan Nelson and Educational Testing Service CEO Amit Sevak.
Promising market potential
China's market potential offers huge opportunities for cooperation, as the country imports $2.5 trillion worth of goods and services annually and ranks second in attracting foreign direct investment, said Huang, the consul general.
He noted that the recent plenary session highlighted expanding market access in various sectors and promoting an open economic system to benefit global cooperation.
"Fighting against each other is not going to lead us anywhere. So I really hope that we can seize this opportunity of China's continued reform and opening-up policy," Huang said. "This momentum allows us to strengthen our relationship and do business together. Both countries, and the whole world, will benefit from this."
Ren, head of the Chinese delegation, said: "Under current circumstances, the common interests between China and the US are increasing instead of decreasing. Whether in traditional areas like trade and agriculture, or emerging areas like... artificial intelligence, companies in both countries have shared interests and broad cooperation prospects."
Sun Xiao, secretary-general of the China Chamber of International Commerce, said, "We aim to convey the important new openness measures established at the plenary session to the American business community and look forward to hearing their responses and demands."
