At present, the cold wave of anti-globalization is surging, and the global trade order is undergoing a profound reshaping.
The supply chain connects upstream commodities and downstream manufacturing companies, and its security and resilience are crucial.
Xiamen C&D Group, Guomao Holdings Group, and Xiangyu Group, which are among the world’s top 500 companies and occupy three of the top four domestic supply chain companies, have accelerated their overseas market deployment in recent years and collaborated with upstream and downstream partners in the industrial chain to improve their international competitiveness.
Gao Shaoyong, general manager of Guomao Holdings Group, said: “The stability of the global supply chain is facing severe tests, and we must unswervingly ‘go global’.”
The three supply chain companies have relied on their long-term accumulation of capital, technology, management and other advantages to expand upstream commodity acquisition channels, build logistics, warehousing, and cross-border e-commerce networks on a larger scale, and set up companies or offices in more countries. From “going out” to “going in”, they have not only helped more Chinese manufacturing companies “go overseas”, but also actively participated in international competition. The pattern of “buying the world” and “selling the world” has begun to emerge.
Since the beginning of this year, due to factors such as increased tariffs imposed by the United States and geopolitical conflicts, upstream raw material prices have increased and logistics costs have fluctuated, which has greatly impacted the security of the global supply chain.
Faced with the complex and severe situation, the three leading supply chain companies, C&D, Guomao and Xiangyu, have made greater efforts to “go global” and layout the global market. They have maintained supply chain security and improved supply chain resilience by adjusting trade structures, building logistics networks, and improving upstream resource acquisition capabilities.
Cheng Dongfang, chairman of C&D Co., Ltd., said: “South America, Europe, and Africa are rich in soybean, corn, wheat and other crop resources. We have established long-term cooperative relationships with local farmers, grain harvesting stations and leading grain merchants to obtain stable supply resources.”
Opening up overseas logistics nodes is also a focus for supply chain companies.
In July this year, Guomao Co., Ltd. purchased 50 containers of Uzbekistan cotton yarn.
The Central Asia train passing through Tashkent traveled 6,000 kilometers to Fuzhou in just 13 days, shortening the logistics time by nearly half compared with the traditional sea-rail combined transport method.
This batch of cotton yarn goes directly to many dyeing factories in Fujian. After processing, printing and dyeing, it is made into various types of fabrics and sweaters and sold all over the world.
Lay out overseas warehouses and build independent and controllable transportation capacity.
Bai Huolian, general manager of the operation and management department of C&D Co., Ltd. said: “In recent years, we have deployed key overseas logistics nodes through equity participation, joint ventures, cooperation, etc., and have approximately 350 overseas warehouses in more than 30 countries and regions overseas. We operate the China-Europe freight train C&D Express and Merchant Airlines cross-border logistics projects, build international chemicals and container shipping fleets, and continue to improve
The company’s global logistics network provides industrial customers with safe, stable, smooth and efficient international logistics services.”
According to Gao Shaoyong, in recent years, China International Trade Group has invested in key logistics assets in Indonesia, Singapore, Guinea and other places, and cooperated with many foreign shipping companies to cope with international shipping price fluctuations and transportation capacity constraints.
In recent years, supply chain companies have accelerated their transformation, from domestic and foreign trade service providers that “buy low and sell high” to building a “buy global” and “sell global” pattern. From “going out” to “going in”, they have deeply integrated and coordinated efforts with the industrial chain to participate in a new round of international competition and reshape core competitiveness.
Guinea is one of the world’s largest bauxite producers.
In 2022, the Xiangyu Group Aluminum Division team went deep into Guinea to find the feasibility of connecting upstream resources.
They found that due to poor infrastructure, Guinea’s resource transportation relies heavily on inefficient land transportation or incompletely developed rivers, and local industrial development is very limited.
In response to these pain points, the team leveraged its own resource integration and logistics advantages to develop an efficient barge transportation network, which not only reduced logistics costs by approximately 15%, but also effectively improved bauxite export efficiency and increased local tax revenue.
In the first half of this year, Guomao Group established companies in Australia and Japan to deeply explore the local markets.
According to Gao Shaoyong, in recent years, the group’s overseas personnel have increased by 40%, and offices have been established in emerging market countries such as the United Arab Emirates, Brazil, and Uzbekistan, so as to be close to the market and production areas and respond quickly.
Deng Qidong, President of Xiangyu Group, introduced that Xiangyu Group has invested in an integrated stainless steel smelting project in Indonesia with an annual output of 2.5 million tons. Since it was put into operation, it has directly created more than 15,000 local jobs and promoted the development of industries surrounding the park. The company has built roads and bridges, provided clean water, and launched student aid programs for the local area, and has been recognized by the local government and people.
The “China Supply Chain Development Report (2024-2025)” points out that under the guidance of the “dual circulation” strategy, China is building a new paradigm of global supply chain development of “internal and external linkage, resilience and collaboration”.
Chinese companies are gradually moving from “exporting products overseas” and “exporting production capacity overseas” to a new stage of “exporting industrial and supply chains overseas.”
In the first half of this year, the overseas business revenue of Guomao Group reached 29.545 billion yuan, and the trade scale with countries along the “Belt and Road” initiative was nearly 40 billion yuan; the overseas business scale of C&D Co., Ltd. exceeded 5.7 billion US dollars, a year-on-year increase of about 10%;
In addition, supply chain companies are relying on their global layout advantages to help more Chinese manufacturing companies “go overseas.”
Since 2023, Shengli (Fuzhou) Heavy Industry Group Co., Ltd. has started cooperation with Xiamen International Trade Group. Guomao Group purchases steel for Shengli Group’s steel mills in Vietnam through its global resource network and helps Shengli sell finished rebar in Southeast Asia.
Central enterprises, state-owned enterprises, and private enterprises will give full play to their respective advantages and form a joint force.
The person in charge of the interviewed companies proposed that the new round of “going overseas” should increase supporting services in information consulting, legal affairs, talent, financing and other aspects.
Cheng Dongfang said: “Chinese enterprises have strengthened collaboration in going global and worked together to expand the international market through the ‘Industrial Chain Alliance + Industry Association’ model. Enterprises that have ‘going global’ have formed ecological partner alliances with local Chinese-funded enterprises and local enterprises that have been operating for many years, and actively rely on the resources of overseas industry associations to quickly deepen the
Enter the upstream and downstream of the industrial chain to enhance overall competitiveness.”
In May this year, Xiamen also issued the “Special Action Plan for Improving Supply Chain Legal Services in the Maritime Silk Road Central Legal District” to provide supply chain companies with full-chain, full-cycle, professional, and international legal and business integration services to improve the risk prevention and control capabilities of “going overseas”.
