Cooperation on global supply chain crucial to global economic recovery: Global Smart Supply Chain Summit attendees
Web Editor:國際日報 International Daily News
Cooperation among domestic and transnational firms on the global supply chain is crucial to global economic recovery in the fallout from the COVID-19 pandemic, according to experts attending the 2020 Global Smart Supply Chain Summit (GSSC) which was held virtually on Thursday.
Speaking at the summit via video links, the experts particularly focused on China's new development strategy of "dual circulation", in which domestic and international markets boost each other, with the domestic market as the mainstay. According to the experts, the strategy, floated by China's top leadership in May, could not be construed in a one-sided way, and the "dual circulation" could not be artificially separated into two different parts.
"More than 80 percent of the production is supplied to the domestic market for consumption. And we also need both domestic and imported resources and mutual promotion of the domestic and international markets, in what is described as the ‘dual circulation’ of resources in both the international and domestic markets," said Justin Yifu Lin, dean of the Institute of New Structural Economics of Peking University.
The experts expressed the belief that for development of the global supply chain, it is necessary to deepen labor division and cooperation. Firms play an important role in the process of labor division and business cooperation, and they should keep on innovation to ensure the vitality of the supply chain.
"And in a global supply chain, those firms work together, they trade with each other. Benefits that we receive from more trade, and the benefits that we receive because transportation has gotten cheaper," said Paul Romer, winner of the 2018 Nobel Prize in Economics.