- Oct 23, 2020
GSSC Series: China Has Comparative Advantages: Justin Lin
by Yuchuan Wang
“I believe that China in the new development pattern will remain the place with the most development areas in the world. New technological innovations and new platforms have great prospects in China,” said Justin Yifu Lin, former chief economist of the World Bank and Honorary Dean of the National School of Development at Peking University, during the 2020 Global Smart Supply Chain Summit (GSSC) held by JD Logistics on October 22nd.
As the global economy has been significantly impacted by COVID-19, Lin suggests enterprises should fully make use of domestic and international markets and resources. “We need the ‘dual circulation’ in which domestic and international resources and markets promote each other.”
Every country has advantages and disadvantages in its economy, he said. “(Developed countries) are advantaged in highly capital-intensive and highly technology-intensive industries, while we are not—but we have comparative advantages in some traditional industries, such as the labor-intensive processing industry.”
Supply chain is a key infrastructure to drive growth both domestically and internationally.
As early as during the 2018 GSSC, JD Logistics announced the expansion of the company’s international logistics network, to connect the world by achieving two-day shipping from China to other countries, and vice versa. As of now, JD is operating over 110 warehouses overseas that support import, export and localized e-commerce businesses such as in Thailand and Indonesia.
Domestically, during the 618 Grand Promotion this year, JD announced the upgrade of its lower-tier markets program to provide 24-hour delivery service in over a thousand counties and tens of thousands of townships in China, including either the expansion or new construction of 13 local warehouses and transfer centers.
Lin’s point of view echoes that of Zhenhui Wang, CEO of JD Logistics, who also spoke during this year’s GSSC. “We aim to make our company a world-leading supply chain logistics enterprise headquartered in China, serves the world, and brings value to global customers,” Wang said.
“Under the new round of technological and industrial revolution, we see unprecedented opportunities on the horizon for the logistics industry,” Wang added. “The integration of logistics and technology has changed the way the world is connected and become a driving force in promoting global openness and growth.”