China trade council releases landmark study of global supply chain health

The first comprehensive assessment of global supply chain health was released by the China Council for the Promotion of International Trade (CCPIT) on Nov. 26, showing sustained growth despite recent geopolitical challenges.

The 2024 Global Supply Chain Promotion Report, introduced during the second China International Supply Chain Expo (CISCE) in Beijing, was accompanied by two new indices measuring global supply chain connectivity and development.

Zhao Ping, director of the CCPIT Academy, elaborates on the 2024 Global Supply Chain Promotion Report and indices during the second China International Supply Chain Expo (CISCE) in Beijing, Nov. 26, 2024. [Photo by Zheng Liang/China.org.cn]

Zhao Ping, director of the CCPIT Academy, highlighted the resilience of global supply chains despite challenges including COVID-19, natural disasters and geopolitical conflicts. "The negative impacts on global supply chain connectivity are short-lived and limited. This report fully demonstrates that global supply chain connectivity is an unstoppable trend," she said during a press event.

The supply chain-themed report, the second of its kind, is CISCE's flagship publication. It is the world's first research report examining supply chain promotion from an industry and commerce perspective, using an analysis model to assess the latest trends, challenges and developments of global supply chains.

The report highlights several major trends, including how global infrastructure - from logistics to financial – is evolving to balance efficiency and security, aiming to create more resilient supply chains. The report also notes a shift toward regionalization, diversification, digitalization and sustainability, spurring changes in trade rules for new technologies and business models.

According to the report, major economies are legislating to secure critical supply chain resilience, emphasizing local materials and risk monitoring. Meanwhile, technological advances are driving innovation and sustainable growth in global supply chains, while financial institutions and policy banks are developing new products to ensure stability.

Officials and guests launch the 2024 Global Supply Chain Promotion Report and indices during the second China International Supply Chain Expo (CISCE) in Beijing, Nov. 26, 2024. [Photo by Zheng Liang/China.org.cn]

The 2024 edition includes one general report and six sub-reports covering humanoid robots, smart cars, integrated circuits, wind power, coffee and cotton. Corresponding global supply chain diagrams are also presented to clearly illustrate the layout of the upstream, midstream and downstream in each of the six supply chains worldwide, as well as leading economies and enterprises in each link.

During the event, two groundbreaking indices were also released: the Global Supply Chain Promotion Index (GSCPI) and the Global Supply Chain Connectivity Index (GSCCI).

The GSCPI is the world's first index to quantitatively assesses factors influencing global supply chain development, such as infrastructure connectivity, multilateral and bilateral rules, policies of major economies, technological upgrading and innovation, and support of financial services. From 2018 to 2023, the GSCPI increased by 144%, indicating a more favorable environment for supply chains largely due to improvements in infrastructure connectivity, technological innovation and updated multilateral and bilateral rules.

The GSCCI, another first, measures global supply chain connectivity using data from major international organizations such as the World Bank and International Monetary Fund. The index shows supply chain connectivity improved 170% from 2014 to 2023, reaching a historic high last year. This growth was primarily driven by improved internal supply chain connectivity and development environment factors.

Despite slight declines in certain supply chain segments, both indices suggest international supply chains are following a stable, upward trend, indicating robustness against potential disruptions and reflecting a resilient global economy.

CCPIT Chairman Ren Hongbin emphasized the significance of these indices. "This is the first global initiative using specific data to tackle key issues related to connectivity and disruption risks in global supply chains. It addresses significant concerns of the business community and offers a new public product for all sectors to analyze global supply chains," Ren stated.

The photo shows the venue of the second China International Supply Chain Expo (CISCE) in Beijing, Nov. 26, 2024. [Photo courtesy of CCPIT]

The CCPIT Academy put forward three suggestions for building stronger global supply chains: openness and cooperation, enhancing resilience through scientific and technological innovation, and ensuring stability with improved infrastructure connectivity.

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