Globalization and localization: Digital Trade and technology
2020-12-22 11:46

   "What is the future of globalization in the post epidemic era", "how digital trade drives and optimizes global supply chain", "how to realize the balance of flexibility and efficiency between digitalization and value chain" and "the trend change of globalization and localization" will be broadcast online in China at the third global manufacturing and industrialization Summit (GMIS) on December 20 "Global localization: from global to local". Nan Cunhui, vice president of China Federation of industrial economics and chairman of Chint Group, Volker treier, member of the board of directors of German Chamber of Commerce and industry, and Nicholas Garrett, chief executive officer of RCS global group in the UK, answered the questions raised by Declan curry, a British journalist and news host.


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  On the contribution of Digital Trade and digital technology to changing and optimizing the global value chain, the three guests had unique insights. Nan Cunhui, vice president of China Federation of industrial economics and chairman of Chint Group, pointed out that under the epidemic situation, digital trade and cross-border e-commerce have helped enterprises break through the barriers of the epidemic, achieve rapid matching of supply and demand, and continuously release the potential of economic and trade cooperation, fully demonstrating the strong resilience of digital trade. The change of business model brought by digitalization and intellectualization promotes the remodeling of enterprise value chain. Chint's global "photovoltaic manufacturing + Internet" transparent factory has data records in all aspects of the product life cycle, realizing "1 minute network order, 6 hours factory production, 48 hours distribution and installation, cloud monitoring and live broadcast, 30 years of quality assurance", and realized the "72 hours" service mode. Chint Thailand factory through the Internet platform remote monitoring management, manufacturing standards unified, not subject to regional and national boundaries, to ensure the normal production during the epidemic.


Nan Cunhui, vice president of China Federation of industrial economics and chairman of Chint Group, attended the online seminar

  According to Garrett, chief executive of RCS global group in the UK, the technology platform connects companies associated with trade, and uses end-to-end supply chain, digital value chain and digital product traceability system to reduce enterprise risk and increase product value. After the digital transformation of the supply chain is more transparent and reasonable, the enterprise has built an important market advantage, risk management mechanism and efficiency advantage.


Nicholas Garrett, CEO of RCS global group, UK, participated in the online discussion

  Dr. treyer, member of the board of directors of the German Chamber of Commerce and industry, believes that with the development of the epidemic situation and digital technology, enterprises are facing more diversified market risks than ever before, and globalization is being restructured. According to a recent survey conducted by the Federation of German industries, nearly 40% of the member enterprises are looking for new suppliers, simplifying all aspects of the supply chain and choosing more local production suppliers. Due to Germany's high dependence on the open international market, the current trend of decoupling Germany from different economic regions has aroused many concerns of enterprises.


Volcker Terrier, board member of the German Chamber of Commerce and industry, participated in the online seminar

  Speaking about the impact of the epidemic on the supply chain and the impact on Global trade, vice president Nan Cunhui pointed out that the epidemic is undermining the basic principles of global manufacturing. The global supply chain is the product of economic globalization and is currently under the dual pressure of economy and politics. Only when the economies are open to each other can the global industrial chain and supply chain survive and develop healthily. Any link is unstable, there will be "chain break" risk, endangering the whole.

  When answering how to ensure the flexibility and efficiency of value chain and digitization, and thus create opportunities for global economic growth, Dr. Terrier believes that innovation is a key driver of economic growth, but innovation is currently being hindered by political factors. In view of the global epidemic situation, some governments have intervened in the economy and the import and export of commodities, resulting in the failure of import of emergency materials. Some countries have set up more stringent trade barriers than in the past, which have led to the suppression of innovation. The world needs globalization, including e-commerce and digital trade and other multilateral means to promote economic development, but there is no agreement on the construction of this system and how to deal with it. The three participants agreed that global digital trade and digital investment need to establish a consistent, fair, efficient and standardized trade rules. Through the establishment of an international cooperation mechanism, information sharing channels should be improved to boost the free flow of data.

  The relationship between globalization and localization, whether globalization will regress after the epidemic, and whether the global supply chain will shrink are the topics of widespread concern. In this regard, vice president Nan Cunhui believes that with the emergence of the new crown vaccine, the economies of various countries will get rid of the crisis and gradually get on the right track. Although the process of economic recovery may be difficult, the cooperation and win-win development of enterprises from all countries are still the mainstream.

  Dr Garrett points out that the global business community is undergoing an unusual period of politicization and state intervention. However, with the rise of digital system connecting the world, globalization will not come to an end, and industries of various countries will cooperate more frequently and closely. Uncertainties may be limited to individual industries.

  Dr. Terrier believes that localization will occur more often, but this does not mean that globalization will regress, production may be more decentralized, and cooperation will depend more on regional agreements and multilateral systems. In recent years, although the trend of Global trade protectionism and nationalism has risen, and globalization and investment have encountered setbacks, especially affecting trade in goods, there are many signs that globalization has not come to an end.


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