On October 11-12,2018,'2018 Global Value  Chain Innovation Development Summit’, cohosted by the World Trade Organization (WTO),  Chinese Academy of International Trade and  Economic Cooperation (CAITEC), and Shenzhen  Municipal People's Government, with the  assistance of Shenzhen Logistics and Supply  Chain Management Association (LSCMA)  and Shenzhen Outbound Alliance (SOA), was  held in Shenzhen Convention and Exhibition  Center.

The Summit was attended by the following  guests: Yi Xiaozhun, Deputy Director General  of the WTO, Xu Qingjun, Counselor of the  Permanent Mission of China to the WTO, Robert B. Koopman, Chief Economist of the WTO,  Gu Xueming, President of CAITEC, Prof. Gary  Gereffi, Director of the Center on Globalization,  Governance & Competitiveness, Duke University,  Zhao Zhongxiu, Founding Dean of the Research  Institute for Global Value Chain and Vice  President of the University of International  Business and Economics, Graham Slack, Chief  Economist of Strategic Intelligence at the  Maersk Group, Luis Arriaga Arias, President of  UPS Asia Pacific Transportation, Gabriel Petrus,  Executive Director of the International Chamber  of Commerce (ICC) and Intelligent Tech & Trade  Initiative (ITTI), Nicolas Buhmann, Commercial  Manager of Global Trade Digitalization at Maersk  Group, Pun-Arj Chairatana, Director of the  National Innovation Agency of Thailand (NIA), Mr.  Chaiyatorn Limapornvanich, Innovation Strategy  Manager of NIA, Marc Auboin, Counselor in the  WTO, Alexander Malaket, President of Opus  International Consultants and Vice Chairman of  ICC Banking Commission Executive Committee,  Mr. Steven Beck, Head of Trade Finance in  Asian Development Bank, Xu Jun, Deputy  General Manager of Trade Finance Department,  Bank of China Jiangsu Branch, Mr. Huang Yi,  Assistant Professor of the Graduate Institute of  International and Development Studies (IHEID),  Geneva, Yu Dayong, Senior Statistics Officer,  Economic Research and Statistics Division of the  WTO, Zheng Yanling, Secretary General of LSCMA,  and Sun Tianlu, Executive Chairman of Shenzhen  Outbound Alliance (SOA).

At the meeting on October 11, opening  statements were made by Yi Xiaozhun,  Deputy Director General of the WTO, Gu  Xueming, President of CAITEC, Zhang Futong,  Special Representative of the Mayor of  Shenzhen, and Zheng Yanling, Secretary  General of LSCMA.

Yi Xiaozhun, Deputy Director  General of the WTO

Mr. Yi analyzed the perspectives of the WTO  on globalization, global value chain, supply  chain and trade financing. He mentioned that  along with the existing trade tensions and  trade frictions, reforms are called for from the  perspective of the WTO. Corresponding changes  should be made. The WTO also hopes that  a smooth development in the future can be  ensured through a series of joint efforts. From  the WTO level, Mr. Yi also called on all members  to cooperate and seek mutually beneficial ways  to find solutions. For manufacturers, traders and  consumers, it is hoped that they can receive  continued support in all aspects of all value  chains. He stated that some of the countries in  different roles have already felt these negative  impacts, and said that these trade tensions  will significantly change the current matching  approach of the supply chain, but will not  reverse the globalization trend of manufacturing.

Gu Xueming, President of CAITEC

Mr. Gu, as an eminent scholar, comprehensively discussed some practices and reflections on China's  participation in the process of the governance and promotion of global value chain in the future.

Zhang Futong, special representative of the Mayor of Shenzhen

Mr. Zhang introduced the use of the WTO and other platforms by Shenzhen in constructing  regulations on global value chain, and proposed suggestions for governance and propositions  in global value chain.

Zheng Yanling, Secretary General of LSCMA

Three panel discussions were held at the Summit on three topics.

Topic 1: Factors affecting Global Value Chains: Changes in Trade Policy and Technology Innovations

Prof. Gary Gereffi, Director the Center on Globalization, Governance & Competitiveness, Duke University

Prof. Gary Gereffi one of the founders of the Global Value Chain Framework, gave a keynote speech on “Trade Protectionism and GVCs”

Nicolas Buhmann, Commercial Manager of Global Trade Digitalization at Maersk Group

Nicolas Buhmann delivered a speech on: “TradeLens: IBM and Maersk have launched an open  and Neutral Supply Chain Platform Poised to Transform the Industry”.

The panel discussion session was presided by Mr. Robert B. Koopman, Chief Economist of the WTO,  where panelists and guests discussed and exchanged their ideas around the topics.

Topic 2: Eyes on Trade Financing: Discussion on Traditional Products and Financing Convenience

Marc Auboin, Counselor in the WTO

Marc Auboin, Counselor in the WTO, gave a keynote speech on “Overview of Traditional Trade Finance  Solutions and Related Policy Issues”. He also hosted a panel discussion to discuss and interact with the  panelists and guests. 

Only a small percentage of international trade pays cash in advance, as usually the earliest moment for  importers to pay is when they receive the goods, while exporters usually want to receive the payment no  later than their delivery. To compensate for this difference, credit or guarantee is required. Trade financing  provides credit, payment guarantees, insurance and receivables financing needed to reduce the risk of  payment during this period. Therefore, trade financing is a lubricant for trade.

Topic 3: Supply Chain Finance: Potential Solutions and Challenges

The panel discussion on this topic was hosted by Marc Auboin,  Counselor in the WTO. Panelists and guests shared their views respectively.

Alexander Malaket, President of Opus International Consultants and Vice Chairman of ICC Banking Commission Executive Committee

On October 12, Alexander Malaket made a keynote speech on  “Review of Supply Chain Solutions and Challenges”.

Robert B. Koopman, Chief Economist of the WTO

Robert B. Koopman made a concluding remark at the Summit.  He indicated in his speech that the Summit covered geography, development, technological development and pragmatic supply chain finance and trade financing issues.

Yi Xiaozhun, Deputy Director General of the WTO

Mr. Yi said in his closing remarks that  the Summit offered many pragmatic and  leading-edge insights. He also found  interaction and exchange of ideas on  the three panel discussion topics very  instructive. He said that the current trade  tension between the two largest economies  will have a negative impact, especially on  enterprises, and they must cope with this  reality. The increase in tariffs will also  have an impact on the import and export  of products. However, the difficulty is only  temporary. In the end, the two sides should  find a solution to solve the problem. Mr.  Yi thanked all the speakers on the spot  for their contributions to the Summit and  their insights into different topics. These  opinions and propositions help to see the  challenges and solutions that are currently  being faced, and participants can benefit a  lot from it.

Sun Tianlu, Executive Chairman of SOA

Sun Tianlu, Executive Chairman of SOA, said in the closing  speech that this Summit is a high-end and grand gathering.  According to the theory of global value chain, research on the  new development of the multilateral trading system can be  described as fruitful, which brings  new topics and new perspectives to  the theory of global value chain. She  introduced the latest development of  SOA. She mentioned that the global  value chain will be well developed  and implemented in the GuangdongHongkong-Macau Greater Bay  Area. With a solid foundation on  technology, logistics and finance,  and a complete infrastructure system  for advanced manufacturing and  upstream and downstream industry,  it will be a good testing ground  for global value chain. She pointed  out that experts from all over the  world are warmly invited to come  to Greater Bay area, especially in  Shenzhen, and she hoped that these  experts would choose the Greater  Bay area, especially Shenzhen, as the  research base and testing ground of  global value chain, so that Shenzhen  can make contribution to global  economy!

Group photo of guests of 2018 Global Value Chain Innovation Development Summit

The two-day "2018 Global Value Chain Innovation Development Summit" completed all the agendas. Ms.  Sun announced, on behalf of the organizer, that the "2018 Global Value Chain Innovation Development  Summit" was successfully concluded.