'To decouple from China' not possible

Decoupling from China is impossible as multinationals could not leave the country's flexible and resilient supply and industrial chains for sustainable development, said company executives and industry experts during the International Cooperation and Development Conference for Young Entrepreneurs on Wednesday.

"China's supply chain has been very flexible," said Xu Gang, CEO of Airbus China. "Even with the COVID-19 pandemic, Chinese suppliers didn't postpone deliveries or experience substantial disruptions.

"At Airbus, we are fully aware that only with free trade can there be a free flow of resources and the aviation market can develop. Therefore, the company is devoted to developing multilateralism and is against trade protectionism."

Ueda Toshihiro, vice-president of the Japanese Chamber of Commerce in China, said: "For Japanese multinationals, it is impossible to decouple from China as many of its supply chains have been established for three to four decades."

Ueda, who is also executive director of AGC Co Ltd, noted that China's role is changing on the global stage, from the world's largest consumer market to a powerhouse of scientific innovation.

He said: "Such change enables us to build a wider supply chain, including material purchasing, production and sales, all in China. Now, AGC has established its own research and development center and technology center in the country.

"For multinationals, to establish a well-rounded global industrial chain, 'open' is the keyword. Companies should find their strengths and complement each other's advantages for better growth."

They made the comments at a panel during the International Cooperation and Development Conference for Young Entrepreneurs, a forum held from Tuesday to Wednesday by the China International Youth Exchange Center, to explore new ways for global economic recovery.

The conference has attracted 200 heads of foreign chambers of commerce and business organizations, and young entrepreneur representatives from nearly 50 countries and regions.

On Tuesday, the International Cooperation for Young Entrepreneurs Beijing Declaration was also presented. The declaration called on young entrepreneurs across nations to share cooperation, enhance the high-quality development of the Belt and Road Initiative, optimize the global industrial layout, and maintain the stability and security of global industrial and supply chains.

The declaration vowed stronger actions to boost cooperation in the digital economy to support sustainable development and reduce the digital divide for emerging economies and developing countries.

As the pandemic brought a new normal to various fields, Wee Ka Siong, former minister of transport of Malaysia, said at the conference that young people will play a major role in driving the global economic recovery.

"But countries need more dialogue than confrontation as the global economy is interconnected, so we need more communication to promote global mobility and economic growth," he said.