Global supply chain enablers still in the mainstream

The Global Supply Chain Promotion Index rose from 0.27 in 2018 to 0.66 in 2023 and the Global Supply Chain Connectivity Index increased from 0.271 in 2014 to 0.732 in 2023, both hitting a historic high. These two indices were officially released on Wednesday at the second China International Supply Chain Expo held in Beijing, according to GMW.cn.

The Global Supply Chain Promotion Index is the world's first comprehensive index to quantitatively assess the facilitation level of global supply chain. Based on a global supply chain facilitation analysis model, it includes metrics such as infrastructure connectivity, the influence of bilateral and multilateral trade rules, the impact of major economies' policies, technological innovation, and financial service support.

The Global Supply Chain Connectivity Index is the world's first comprehensive index to comprehensively measure the degree of connectivity of the global supply chain, taking into account the connectivity logic across upstream, midstream, and downstream components, and the external factors affecting supply chain connectivity.

Zhao Ping, director of the Academy of the China Council for the Promotion of International Trade, said that overall, the upward trend of the "two indices" is very clear. This indicates that the overall development environment of the global supply chain is relatively stable, with facilitating factors remaining in the mainstream.

The 2024 edition of the Global Supply Chain Promotion Report, released alongside the two indices, summarizes five major trends in the development of global supply chains.

First, global logistics, communication, and financial infrastructure construction are moving toward a balance of efficiency and security.

Second, as the global supply chain develops toward regionalization, diversification, digitalization, and greening, new technologies, models, and business formats are emerging.

Major economies are enacting legislation to ensure the resilience of supply chains for key products and are strengthening supply chain risk monitoring and early warning systems.

Moreover, the emergence of new technologies is accelerating, with technological advancements driving innovation and sustainable development in the global supply chain.

The report also noted that international financial institutions and national policy banks are continuously launching new products to optimize and enrich financial supply.

Long Guoqiang, deputy head of the Development Research Center of the State Council, noted that digital transformation and green transformation have become important driving forces for the accelerated adjustment of supply chains.