On Monday 13 May 2024, AustCham China Chair Vaughn Barber attended the 2024 Global Trade and Investment Promotion Summit in Beijing, China, at the invitation of the China Council for the Promotion of International Trade (CCPIT).
Chinese Vice President Han Zheng attended the opening ceremony and delivered a speech in which he emphasized China’s commitment to economic openness and creating a favourable environment for foreign investment. He highlighted the importance of technological innovation and international collaboration, as well as China’s dedication to sustainable development. Han also stressed the need for stronger multilateral cooperation to enhance global trade systems and ensure equitable economic growth.
AustCham China Chair, Vaughn Barber, participated in the plenary session on the topic of “Building Open and Win-win Supply Chains” alongside Mr. Ren Hongbin, Chairman of CCPIT; Siddharth Chatterjee, UN Resident Coordinator in China; Julian Fisher, Chair of the British Chamber of Commerce in China; Lorenzo Riccardi, Chairman of the China-Italy Chamber of Commerce; and Loh Wee Keng, Chairman of the Malaysian Chamber of Commerce and Industry in China. China Media Group-CGTN anchor Ms. Wei Tian moderated the discussion.
The following is a summary of the key points Vaughn made during his participation at the Summit:
Open and Efficient Supply Chains
Vaughn emphasised the importance of open supply chains that leverage regional advantages to maximize efficiency, productivity, and innovation. He also highlighted the growing constraints on how companies can achieve this due to regulations addressing issues such as data privacy, the environment and food safety, alongside new policies being enacted by governments to strengthen economic resilience and national security.
Australia-China Net Zero Collaboration
Vaughn underscored the significant opportunities for collaboration between Australian companies and Chinese companies in Australia’s transition to “net zero.” Vaughn highlighted three sectors including renewable energy, electric vehicles and sustainable transportation infrastructure, and advanced manufacturing. Vaughn highlighted specific areas, such as green hydrogen production and green steel initiatives, where mutual benefits and complementarities are high.
Alignment with Public Policy
Vaughn discussed the importance of aligning supply chains with Australia’s public policy settings and societal expectations. This includes adhering to ESG standards, obtaining “social license” and managing the foreign investment approval process effectively. Recent policy announcements, such as the “Future Made in Australia Act,” aim to strengthen local manufacturing, develop sovereign capabilities, and create high-quality jobs. This will likely involve conducting certain high-value activities in Australia, with investments in local capabilities and infrastructure to achieve “win-win” supply chains benefiting both foreign investors and the local economy.
Vaughn expressed optimism that by structuring international supply chains in ways which are responsive to and aligned with these policy objectives, Chinese and Australia companies will find new ways to cooperate as Australia undertakes “the most dramatic economic transformation Australia has faced in the modern era” and seeks to become “an indispensable part of the global net zero economy”.
Summary
In summary, collaborating in the transition to “net zero” is win-win for Australia and China. Chinese companies can play an important role because of their technology and cost advantages. By combining their strengths, Australia and China can accelerate the global transition and set a powerful example of international cooperation against climate change.