Chinese Premier Xi Jinping assembled a group of global business leaders in an effort to protect supply chains.
Jinping had a meeting with a group of executives including Rajesh Subramaniam of FedEx, Ola Källenius of Mercedes-Benz and Georges Elhedery of HSBC, where he asked them to protect supply chains, according to Financial Times.
“We hope everyone can take a broad and long-term view . . . and not blindly follow actions that disrupt the security and stability of global industrial and supply chains, but instead contribute more positive energy and certainty to global development,” Xi told the gathering in Beijing on Friday.
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What are supply chains?
Supply chains are systems that manage the flow of goods, services, and information from raw material suppliers to end consumers. They involve various stages, each crucial to bringing a product to market. The process begins with sourcing raw materials, followed by manufacturing, where these materials are transformed into finished products. Once products are made, they are distributed to warehouses and retail locations before finally reaching customers. This network of interconnected businesses, resources, and activities ensures that products are available when and where they are needed.
In modern global supply chains, businesses often rely on suppliers, manufacturers, and partners from all over the world, making coordination and logistics more complex. Effective supply chain management is essential for companies to reduce costs, maintain product quality, and ensure timely deliveries. It requires optimizing production processes, inventory management, and transportation systems.
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The efficiency of a supply chain directly impacts a company’s competitiveness and profitability. Challenges like disruptions (e.g., natural disasters, geopolitical issues, or pandemics) can affect supply chains significantly, leading to delays or shortages. As a result, companies are increasingly adopting technologies like automation, data analytics, and blockchain to enhance supply chain visibility, flexibility, and resilience.
The event at the Great Hall of the People marked the second consecutive year that Xi held a carefully staged meeting with foreign CEOs in the Chinese capital.
Jinping told the gathering in Beijing on Friday that he hoped that everyone would take a broad and long-term view and not blindly follow actions that would disrupt the security and stability of global industrial and supply chains, but instead contribute more positive energy and certainty to global development.
