Chinese, US business representatives confident in supply chain cooperation

China

Chinese, US business representatives confident in supply chain cooperation

2024-07-30 09:45 Last Updated At：16:27

The representatives attending a trade forum in New York on behalf of Chinese and U.S. business communities have expressed their confidence in a deepening cooperation in the sector of supply chain between the two countries.

Convened on Monday, the China-U.S. Economic and Trade Cooperation Forum was hosted by the China Council for the Promotion of International Trade (CCPIT), a national trade promotion body.

CCPIT President Ren Hongbin pointed out at the forum that as a "cornerstone" of China-U.S. relations, the bilateral economic and trade cooperation has been deepening since the two countries established diplomatic ties 45 years ago.

With the two economies highly complementary and their interests deeply integrated, a stronger cooperation in the supply chain will help maintain the stability and smooth flow of the global supply chain and inject more impetus into the economic growth of both countries, the region and the world at large, he said.

Chinese Consul General in New York Huang Ping said that the third plenary session of the 20th Central Committee of the Communist Party of China (CPC), which concluded in Beijing earlier this month, made it clear that China will continue to pursue the policy of opening up.

U.S. companies are welcome to make good use of platforms such as the China International Supply Chain Expo to enhace cooperation with China and help foster a steady development of bilateral relations, he added.

Inaugurated in 2023 and hosted by the CCPIT, the second China International Supply Chain Expo is scheduled for November this year.

Peter Tichansky, president and CEO of the Business Council for International Understanding, underlined the more than 300 reform measures proposed at the Plenary, noting that they provide broad space for U.S.-China cooperation in sectors such as technological innovation, energy transition, artificial intelligence (AI), chips and trade.

He also expressed the hope to enhance cooperation with the CCPIT for contributing to a safer and more prosperous world.

Declan Daly, chief operating officer of the U.S. Council for International Business (USCIB), underscored the enormous benefits brought by sound bilateral relations for the enterprises of both countries.

He said the USCIB is willing to deepen cooperation with the CCPIT and its affiliates for building a more open and inclusive market.

"The supply chain cooperation between China and the United States is impossible to artificially decouple. Both Chinese and American enterprises have quite real and urgent needs [for each other's products]. Many CEOs of large companies from the United States told us last year that China has the most complete industrial system and it is impossible for them to leave China," said Lin Shunjie, chairman of the China International Exhibition Center Group (CIEC), in an interview with China Central Television on the sidelines of the forum.

"I see the partnership that I can make with Chinese manufacturers as a necessity. And it's going to the future of my business," said Jonathan Webb, co-founder and CEO of the U.S. e-commerce company Packable.

U.S. automotive tariffs deepen industry pressures, halt investments in Mexico

2025-04-04 04:17 Last Updated At：05:27

Long-standing challenges in Mexico's automotive industry have been exacerbated with the implementation of the U.S. tariff on imported cars, which took effect Thursday, fueling uncertainty and job losses.

Last month, U.S. President Donald Trump announced a 25 percent tariff on all imported automobiles.

Ciudad Juarez, one of Mexico's largest trade ports and a key manufacturing hub, is now facing even greater challenges as rising trade protectionism deepens existing pressures.

At a medal parts manufacturing factory that has been in operation for over 30 years, the workforce has drastically reduced from 60 workers to just 25 due to uncertainty about the future.

Even before the U.S. tariffs on imported cars took effect, mounting pressure had already begun to ripple through the industry, prompting many companies to suspend investment and procurement plans.

"Some 95 percent of the products exported from Chihuahua, where Ciudad Juarez is located, are industrial manufactured goods. We have held multiple meetings to discuss solutions. In fact, over the past year and a half, more than 55,000 factory workers here in the city have lost their jobs," said the owner of the factory.

The automotive industry is a key pillar of Mexico's economy, generating nearly 100 billion U.S. dollars in output. The auto parts assembly industry alone provides over 900,000 jobs for the country, while automotive assembly companies create 175,000 jobs.

According to statistics from the Mexican Association of Automotive Dealers (AMDA), over 40 percent of the components used by American auto manufacturers are imported from Mexico. Last year, Mexico produced four million cars, approximately three million of which were exported to the U.S.

Industry insiders indicate that due to the high degree of interdependence in the sector between the U.S. and Mexico, along with a shortage of skilled labor, the U.S. goal of bringing automotive manufacturing back to its shores through tariffs is unlikely to be realized in the short term.

Moreover, the established industrial chain in Mexico faces the risk of being disrupted, which will ultimately have repercussions on consumer spending and further exacerbate inflation in the long run.

"Young people from the U.S. are no longer willing to work in the manufacturing sector. I believe there will be no growth in the relocation of automotive parts and vehicles factories in the short term," said Guillermo Rosales Zarate, ADMA's executive president.

"Personally, I hope this avalanche of tariffs doesn't continue; otherwise, it will lead to more significant issues affecting the U.S. economy. If these tariffs remain in place long-term, it will be the American people who suffer the most," said Ricardo Ramos, a professor with the Autonomous University of Ciudad Juarez.