What business leaders are watching at CIIE: Part II
1. What are the highlights of your exhibits at the China International Import Expo? Are you launching any new products, technologies or solutions?
During the CIIE 2018, UPS has prepared informative sessions to share UPS’s know-how on custom brokerage and import management. Moreover, we will also showcase our services and leading technologies, featuring how UPS contributes to and facilitates the import businesses worldwide. Meanwhile, UPS has just rolled out the addition of several new stations to its intercontinental rail service connecting China and Europe, improving connectivity for businesses in both regions. UPS’s rail service presents a competitive solution – companies can save up to 65 percent in costs when compared with air freight, and benefit from time savings of nearly 40 percent when compared to traditional ocean movements. This UPS China-Europe rail service expansion will facilitate access to markets in both China and Europe for businesses located in major cities along Belt and Road route. We expect to promote more import trade flows by announcing this news coinciding with UPS’s participation at the first CIIE, a high-profile government-led event.
2. In terms of deals, what do you expect from the CIIE?
CIIE 2018 provides UPS with a platform to share cross-border trade insights and best practices gained from working with customers in China over the past 30 years; it’s also an opportunity for us to get a better understanding of the current challenges facing Chinese businesses. We want to raise awareness of UPS’s import supply chain capabilities and strengths. As a partner to Asian businesses with intra-Asia and Europe shipping needs, across key industry segments such as retail, high-tech and industrial manufacturing/automobile. UPS reinforces its commitment to enabling global cross-border trade.
3. Do you think the CIIE could eventually help drive the development or upgrade of the industry your company is in, and your company’s strategy in China?
Initiatives like the Belt and Road Initiative and organization of the China International Import Expo (CIIE) are demonstrative of the Chinese government’s steadfast commitment toward greater integration with the global marketplace.
The CIIE will continue to drive restructuring of the importing environment. It reveals the increasing demands for supply chain optimization and operation efficiency from customers in different sectors including retail, high-tech and industrial manufacturing/automobile. To this end, we’re offering a differentiated approach to solving our customers’ challenges through effective logistics solutions specific to these industries. We are feeling optimistic about the future logistics industry as we see great opportunities.
While UPS has only been operating in China for 30 years, it’s important to note that the organization has been around for more than 110 years now; and we’re good at adapting to the changing demands economically, socially, environmentally and even culturally, across the 220 countries and territories we work and serve.
4. What’s your view on China’s pledge to further open up its markets to foreign companies? How would that benefit your business? Please give specific examples.
As China continues to implement reforms and progresses toward greater market openness, the logistics industry is also transforming to meet the dynamic needs of Chinese businesses as they engage in more global trade. Logistics is the backbone of increased cross-border trade, and will bridge the gap between complex global value chains and new consumer pools.
Being the advocate of free trade and globalization, UPS is looking forward to the opportunity to deliver tailored solutions and experience to Chinese businesses looking to increase their participation in global value chains. UPS is focused on expanding our geographical presence and improving the customer experience for businesses in the high-tech, automobile, industrial manufacturing and retail segments.
In recent years, the Chinese government has proposed several initiatives to deepen China’s openness, and UPS is focused on expanding our geographical presence and improving the customer experience for businesses in the high-tech, manufacturing and retail segments.
5. What is your forecast for China’s economy in the next three years? What key issues will you be watching?
The development of the Chinese economy has kept great momentum for consecutive years.
We can see some of the emerging trends of the China market, which will influence the economic development in regional and global markets. Transitioning from low-cost production to value-added manufacturing, China has made remarkable strides toward improving market access and developing the infrastructure needed to promote unimpeded trade with its economic partners since its reform and opening-up policy was introduced 40 years ago.
By 2021, China will add $1.8 trillion in new consumption, roughly the size of Germany’s consumer economy and more than one-fourth of all consumption growth in major economies.
Against a backdrop of the shifting industrial purchasing landscape and a rapidly growing middle-class, opportunities abound for businesses. We recognize the importance of strengthening the manufacturing base, but also know the critical role that services play in that regard. We know that you can’t make it, move it, buy it or sell it without services, including the vital express delivery, logistics and transportation services that drive commerce.
