Economy

China provides' key hub 'support for global supply chain

2026-04-27   

Today, as the global industrial chain accelerates its restructuring, China is upgrading from a "world factory" to a "global supply chain hub" and becoming a key pivot for maintaining the stable operation of the global industrial chain. Qingdao, located in eastern China, has both a deep-water port and one of the three major shipbuilding bases planned and constructed by China. China Shipbuilding Industry Corporation's China Shipbuilding Engine Co., Ltd., located here, has recently successfully delivered China's first ammonia fuel low-speed marine engine that has officially achieved commercial delivery, filling the application gap in China's zero carbon marine power field. CSIC Engine has established deep cooperation with more than 130 companies in countries and regions such as Japan, South Korea, Switzerland, Germany, Italy, etc., integrating advanced technology and high-quality components to create various types of engines with high emission reduction rates and low-carbon emissions, such as LNG, methanol, ammonia, etc., which are widely used in various commercial ships. Chen Yifang, Deputy General Manager of CSIC Engine, stated that as the main enterprise in the marine low-speed engine industry chain, CSIC Engine promotes high-level production and high-quality delivery of marine low-speed engines through upstream and downstream supply chain management and technological collaboration. This "one-stop" supporting capability makes global customers willing to entrust orders to China. The engine is the "heart" of a ship, which is related to the safe and smooth operation of international shipping. Chinese made engines, represented by China Shipbuilding Industry Corporation's engines, are an indispensable "power source" for the operation of the global supply chain. China is the only country in the world that has all industrial categories in the United Nations Industrial Classification. By 2025, its manufacturing added value will account for nearly 30% of the global total, and its manufacturing scale is expected to remain the world's largest for 16 consecutive years. This full industry chain advantage gives China an irreplaceable resilience and response speed in the global supply chain. In the modern factory of China Yituo Group Co., Ltd. located in Luoyang, Henan Province, central China, red tractors are lifted by mechanical arms and assembled on the assembly line. A 180 horsepower wheeled tractor manufactured here contains over 1300 components, with China Yituo as the chain owner, which can drive more than 700 suppliers. Behind a machine, a huge supply chain system is indispensable, "said Su Wensheng, Deputy Secretary of the Party Committee and Deputy General Manager of China Yituo Corporation. Tractors manufactured by China Yituo have been sold to more than 100 countries and regions, covering Central Asia, Eastern Europe, South America, Africa and other regions, establishing a complete product line. In countries such as Kazakhstan, Serbia, and Congo (Brazzaville), China Yituo has established localized assembly plants, shared agricultural machinery technology and management experience, and improved local machinery manufacturing capabilities and agricultural mechanization levels. China Yituo has also established a research and development center in Belarus, mainly engaged in technological development in agricultural machinery and other fields. Su Wensheng said that the globalization of China Yituo is moving from "product going global" to a new stage of "industrial chain and supply chain going global", and the model of exporting in the form of individual modules to target markets and then completing assembly has achieved a deep integration of "Made in China+Local Assembly+Technology Sharing". Chinese manufacturing is deeply embedded into the global industrial chain through intermediate goods trade, driving the industrialization process from Southeast Asia to Africa. Wang Jun, Deputy Director General of the General Administration of Customs of China, previously stated that China's intermediate goods trade achieved rapid growth in 2025, which is the main driving force for exports and provides strong support for global industrial cooperation. Data shows that in 2023, the dependence of global intermediate goods trade on China will be 16%. This means that China has become an indispensable central link in the global manufacturing value chain. A recent article on the website of Fortune magazine cited the views of Cheng Zhengmin, a partner at McKinsey Global Institute, stating that "in the future, we may purchase fewer 'Made in China' goods, but more products will contain components made in China". China's 15th Five Year Plan requires expanding intermediate goods trade and guiding the rational and orderly cross-border layout of industrial and supply chains. In the view of Spanish economist Pedro Balagan, the 15th Five Year Plan is an important planning document that not only concerns China's future, but also the future of the global economy. A strong logistics hub system provides hardware support for China's position as a "key hub" in the global supply chain. Zhengzhou, the capital of Henan Province, is located in the inland hinterland of "not by the sea or along the border". With this place as a hub, international goods are connected to more than 40 countries and 140 cities through the China Europe freight train, and through the "Air Silk Road", they reach 32 countries and 73 cities. With Zhengzhou and Luxembourg as "double hubs", Zhongyu Aviation Group has successfully built the "Air Silk Road" connecting China and Europe, and copied the "double hub" model to Malaysia, Hungary and other countries, striving to build a "double hub" node network covering the main areas of the "the Belt and Road" by 2030. One iconic feature of a hub is the transfer and distribution of goods. ”Zhang Mingchao, Secretary of the Party Committee and Chairman of Zhongyu Aviation Group, said that the "dual hub" model has played a positive role in stabilizing the global supply chain, especially for the transportation of high value-added, high time efficient, ultra long, super large, and overweight goods, which is a very necessary option. Professor Lan Qingxin from the National Institute of Opening up at the University of International Business and Economics believes that China has become a core node for the efficient flow of global goods and factors. The highly interconnected logistics system enables Chinese manufacturing to participate in global division of labor with high reliability and delivery time, which also strongly supports China's position as a "key hub" of the global supply chain. (Looking into the New Era)

Edit:He Chuanning Responsible editor:Su Suiyue

Source:Xinhua

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