GENEVA, Dec. 11 (Xinhua) -- Chinese manufacturers, accounting for over a quarter of global manufacturing output, can play a vital role in creating a sustainable global supply chain, an industry insider has said.
China accounted for 31 percent of global manufacturing output in 2022, said Kiva Allgood, head of the center for advanced manufacturing and supply chains at the World Economic Forum (WEF) in an interview with Xinhua, citing UN statistics.
Seeking sustainable transformations and adopting people-centered technologies across China's manufacturing sector could have a significant impact on the global supply chain as such efforts will increase efficiency, advance progress toward net-zero targets, and foster innovative partnerships, she said.
China's "1+N" strategic framework drives its commitment to national carbon neutrality, integrating sustainability across its entire economy. As a global leader in clean energy technologies like solar, wind, electric vehicles and batteries, it has made significant strides in reducing costs and advancing the global clean energy transition, Allgood said.
This transformation decreases reliance on fossil fuels and bolsters sustainable supply chains. Furthermore, as a major producer and exporter, China is strengthening global supply chain resilience by aligning domestic sustainability standards with global norms, promoting the green transition in manufacturing and supply chains, the executive said.
Allgood noted that 22 manufacturers have recently joined the Global Lighthouse Network, a WEF initiative promoting advanced manufacturing practices.
"Over half of the newest wave of Lighthouses is based in China, including all three Sustainability Lighthouses, highlighting a strong commitment to sustainable industrial transformation among Chinese companies," she said.
These lighthouses are at the forefront of digital transformation, leveraging technologies such as artificial intelligence (AI), the Internet of Things (IoT), and robotics to boost productivity, enhance sustainability, and develop the workforce, Allgood added.
Geopolitical, technological, and environmental megatrends, she said, are reshaping global supply chains, presenting both challenges and opportunities. Among these challenges is the urgent need to accelerate the adoption of advanced technologies across businesses of all sizes to improve efficiency, reduce emissions, and mitigate disruptions.
Additionally, labor shortages and skills gaps are driving the demand for innovative strategies to attract, retain, and upskill talent, particularly by engaging underrepresented groups and the next generation of manufacturing professionals.
Allgood described a stable and healthy global supply chain as being "innovative, resilient, sustainable, and people-centric."
"People are at the heart of this stability and resilience," she said, underscoring the importance of investing in a skilled and engaged workforce to maintain robust supply chains.
A stable global supply chain is critical to international trade as it ensures smooth trade flows, job creation, economic stability, and sustainability while enhancing resilience against disruptions. It fosters innovation and builds trust among trading partners, contributing to a more integrated and prosperous global economy, she added.
Looking ahead, Allgood envisioned a future global supply chain that is increasingly driven by technological integration, sustainability, resilience, and collaboration.
By embracing advanced technologies like AI and IoT, manufacturers can build resilience against shocks, enhance transparency and traceability, implement innovative workforce programs, and drive sustainable transformation, she noted. ■
