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Upgrading from "World Factory" to "Global Supply Chain Hub": A Perspective on New Trends in China's Supply Chain Development
2025.09.10 Source:Xinhua News Agency

Xinhua News Agency, Beijing, September 10 Title:Upgrading from "World Factory" to "Global Supply Chain Hub": A Perspective on New Trends in China's Supply Chain Development

By Ye Haoming, Xinhua News Agency

  The blue sea ripples gently. A multi-purpose vessel for photovoltaic and energy storage products, operated by Xiamen Xiangyu Group Co., Ltd., is fully loaded with large-scale bulk equipment and photovoltaic modules, sailing for multiple countries in Africa.

"Xiangyu has built a global logistics network covering Europe, Africa, Southeast Asia, the Middle East and North America, providing professional international logistics solutions for Chinese new energy enterprises going global," said Deng Qidong, President of Xiangyu Group.

  Strengthening domestic supply chain development and accelerating global expansion epitomize the trend of Chinese supply chain enterprises speeding up their overseas development.

  On September 9, the China Federation of Logistics and Purchasing released the China Supply Chain Development Report (2024-2025). According to the report, amid global supply chain restructuring driven by economic pattern adjustments, trade protectionism and technological changes, China is upgrading from a "world factory" to a "global supply chain hub".

  Ningbo Zhoushan Port has launched "fast dedicated lines" for emerging markets including the Middle East and Africa, ensuring customs clearance within 48 hours after mechanical and electrical equipment arrives at the port. Relying on its independently controllable route network and emergency dispatching capacity, the port safeguards smooth supply chains across many countries and regions.

  By leveraging its "smart brain system", China Post Express & Logistics Co., Ltd. realizes real-time dispatching of 1 million employees and 42 all-cargo aircraft, and has built a global delivery network with 29 international routes serving 4,700 Chinese enterprises.

Passing through most member states of the Shanghai Cooperation Organization, the China-Europe Railway Express has operated more than 110,000 trips in total, ensuring stable and smooth regional supply chains and forming an interconnected network featuring two-way east-west connectivity.

  Data shows that in 2024, China's cross-border e-commerce import and export volume reached 2.63 trillion yuan, up 10.8% year on year.

"The overseas expansion model of Chinese enterprises has gradually shifted from 'product exports' and 'capacity exports' to a new stage of 'entire industrial chain and supply chain going global', with industrial clusters jointly building overseas ecosystems," said Liu Yuhang, Director of the China Logistics Information Center.

  The accelerated overseas expansion of supply chains depends not only on an extensive logistics network, but also on the determination of Chinese enterprises to explore cutting-edge technologies and precisely meet market demands.

  Pool cleaning robots independently developed by Shenzhen Seaauto Technology Co., Ltd. have become "blockbuster products" on the cross-border e-commerce platform AliExpress this summer, selling well in the European market thanks to their cost-effectiveness and intelligent design.

  "CrabPro is our flagship model, equipped with a brushless motor, wall-climbing function and a detachable battery, with a suction power of up to 45,000 Pa. Through self-developed core components, we have significantly reduced the unit cost. A German user commented that 'this Chinese robot works better than my previous 1,000-euro equipment'," said the company's brand globalization director.

  At present, in almost every field and link of the supply chain – from design, raw materials to components and equipment – a large number of Chinese small and medium-sized enterprises provide solid support, playing an important role in safeguarding supply chain security and stability and enhancing competitiveness.

  The report shows that China has made remarkable progress in modern logistics, advanced manufacturing and other fields in recent years. A total of 80 national advanced manufacturing clusters cover high-end equipment, new energy and other sectors, with clusters in the high-end equipment sector accounting for 36.25%.

  Statistics from the China Federation of Logistics and Purchasing show that the overall penetration rate of artificial intelligence in China's logistics and supply chain sector has exceeded 37%, among which the penetration rate in transportation optimization is the highest at 78.18%. China's supply chain digital transformation is accelerating, empowered by emerging technologies.

Peng Xinliang, Secretary-General of the Public Procurement Branch of the China Federation of Logistics and Purchasing, noted that logistics enterprises are increasing investment in technological research and development across product development, logistics, procurement and supplier management. Digital technologies including artificial intelligence have been deeply integrated and applied in many supply chain scenarios.

  "AI + supply chain" has become a major development trend across many industries in China, which will further boost the security of China's supply chain and provide strong support for high-quality economic development.

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