Wu Fulin, Vice Chairman and President of China Eximbank was invited to the Economic Summit of China Development Forum 2020 via video on 13 November. He delivered a speech in the session themed “Global Supply Chain in the Post-Pandemic Era” and exchanged views with officials from the Chinese government and experts from companies and academia at home and abroad.
Wu Fulin pointed out that China was set to foster at a faster pace a dual circulation development pattern. As each country is engaged in different domestic and international circulations, it is essential to safeguard smooth and stable operation of global supply chains for pushing these circulations into work. The outbreak of COVID-19 pandemic has affected the entire global industrial and supply chains ranging from raw material supply to high-end production. As a result, the global supply chain might face three possible trends. The first is limited globalization, close regionalization and adequate localization with shortened or even reshaped industrial chains. The second is diversification and decentralization, rather than putting all eggs in one basket. The third is more information-based, digitalized and intelligent supply chains with better efficiency and stronger resilience.
Wu Fulin said that the international community should step up cooperation to promote the orderly operation of global supply chains, in which the financial industry must play an active role. First, financial resources should be better allocated to facilitate the smooth and optimized operation of supply chains. It is not only necessary to provide short-term liquidity support for weak links with difficulties in cash flow, but also important to provide medium- and long-term funding support for the upgrade of supply chains. Second, financial support should focus on critical areas to help remove obstacles in global logistics, increase investment and financing in infrastructure such as customs clearance facilitation and overseas warehouse construction, and provide financial solutions for more enterprises to integrate into global supply chains through technical cooperation and independent innovation, so as to contribute to fostering stable and strong supply chains. Third, the integration of finance and technology should be deepened by promoting the application of “finance+Internet” and “contact-free finance”, in an effort to facilitate efficient and intelligent supply chain financing. Fourth, more efforts should be made on green finance development to integrate ESG (environmental, social and governance) into the whole process of financial services and promote the green transformation of global supply chains.
Wu Fulin noted that China Eximbank is a financial institution that focuses on supporting China’s foreign trade, investment and international economic cooperation. Since the outbreak of the COVID-19, the Bank has taken active and multiple measures to support pandemic containment and help businesses resume work and production. With a focus on stabilizing foreign trade and investment, it has played a positive role in maintaining the stability of industrial and supply chains. Looking ahead, the Bank will continue to leverage its strengths and innovate its services to support foreign trade, cross-border investment and the building of the Belt and Road, thus promoting the smooth, stable and sustainable development of global supply chains.