Nan'an, a city in Fujian Province in southeast China, is a pioneer in China’s valve industry. Over the last four decades, with the support of national policies and the help of the local government, it has formed a large-scale industrial cluster with a complete industrial chain that has over 200 local enterprises.

According to Hong Wansheng, president of Fujian Howu Valve Group Co., since the Belt and Road Initiative (BRI) was proposed in 2013, infrastructure construction in countries along the BRI routes in sectors such as oil, natural gas, water treatment, and environmental protection has created a broad market for Nan’an’s valve industry. Exports have soared, bringing new opportunities for local enterprises.

“Nan’an valve enterprises have been integrated into the global supply chain, exploring the international market while attracting foreign investment and technologies. Local entrepreneurs are frequent participants in cooperation conferences and industry exhibitions to explore new markets,” Hong said.

Making a Difference

The Nan’an Plumbing Pump Valve and Fire-Fighting Equipment Fair has developed into a highly influential international exhibition, attracting many domestic and foreign enterprises every year.

Hong said President Xi Jinping had once remarked that in the era of economic globalization, the global industrial chain and supply chain should be open to facilitate mutually beneficial cooperation. Since development levels and resources vary in different countries, only economic and trade cooperation can help circulate the factors of production for win-win results. “Cooperation will bring opportunities, and we small and micro enterprises also want to make a difference in the global industrial chain and supply chain,” Hong said.

He was speaking at the recent International Alliance of Young Entrepreneurs Associations Work Meeting held in Beijing. The conference hosted by the China International Youth Exchange Center and the International Alliance of Young Entrepreneurs Associations was attended by entrepreneurs from over 20 countries and regions, as well as representatives from foreign embassies in China, chambers of commerce, universities, and international and regional organizations.

Young Entrepreneurs’ Dreams 

At a parallel meeting, young entrepreneurs from China, Hungary, the Republic of Korea, India, the Philippines and other countries exchanged ideas on ensuring the stability of the industrial chain and supply chain and the potential for cooperation in the Global South. With the world undergoing unprecedented changes and trade protectionism, de-globalization and regional conflicts rising, industrial and supply chains are facing challenges.

For the young entrepreneurs at the meeting, the most pressing concern was how to deepen international industrial and supply chain cooperation and better participate in international competition so as to jointly address the challenges and seize the opportunities, to the benefit of all countries.

“We hope that governments and international organizations can create a favorable external environment for enterprises to cooperate in the global industrial chain and supply chain through policy support. We look forward to a more transparent industrial chain and supply chain based on trade agreements. Many trade barriers are now hindering our cross-border trade, so we need governments to do something to facilitate it,” said Rommel Gerodias, chairman emeritus of the Philippine Young Entrepreneurs Association.

Various suggestions were made for potential ways of collaboration, such as establishing an international database for project cooperation and building an information sharing platform to provide new opportunities. The young entrepreneurs hoped for a communication and exchange mechanism and industry-specific promotional events to support the integration of small and medium-sized enterprises into the global value chain, thereby ensuring a fair distribution of economic benefits. They also looked forward to exchange programs that would enable them to visit industrial parks in different countries and learn about different practices in logistics, green production, energy deployment, and cross-border trade.

“There are so many challenges out there, and no country can stand alone. Whether it is problems caused by natural disasters, geopolitics, sustainable development issues, or new technologies such as artificial intelligence, Internet of Things, blockchain… it’s important for us to share our respective professional knowledge to achieve cross-border technological progress,” said Teerin Tanyawattanakul, president of Young Entrepreneurs Chamber of Commerce Thailand.

Most young entrepreneurs also called for talent cultivation, especially long-term programs for technical talents to ensure they truly master core technologies. “China has demonstrated its strong innovation and entrepreneurial ability,” said Jai Kant, deputy director of the Entrepreneurs Association of India. He looked forward to the development of an advanced industrial chain based on artificial intelligence and the Internet of Things and a global network for mutual development.

China has a strong foundation of cooperation with other Global South countries, with significant achievements in areas such as infrastructure and special economic zones. Transportation projects in Africa such as the Mombasa-Nairobi Railway in Kenya and the cross-border Addis Ababa-Djibouti Railway connecting Ethiopia and Djibouti have helped promote trade and industrialization in these countries. Mechanisms such as the Forum on China-Africa Cooperation (FOCAC) have also strengthened cooperation between China and Africa. The China International Supply Chain Expo provides a platform for global industrial and supply chains cooperation, creating more opportunities.

The Hungarian booth at the 24th China International Fair for Investment and Trade in Xiamen, Fujian Province on September 8, 2024. 

China’s Role in Enabling Integration 

China boasts the world’s largest market, and will continue to release huge demand in advanced manufacturing, new urbanization, and the upgrading of consumption structure. In addition, its stable policy environment and the most complete industrial system in the world continue to attract foreign investors.

“Hungary is at the center of Europe, a bridge between the East and the West, with a very rich history,” said Martin Belan, vice president of Hungary’s National Association of Entrepreneur Development. “We are very friendly to investment and have the lowest corporate income tax in the EU. Faced with this very challenging international environment, I hope that our country could build bridges between industries and across borders for common prosperity.”

Nie Zhaoheng, director of external affairs at chemical engineering and construction corporation POSCO China, spoke about the trend of Chinese companies investing abroad. “Recently, we started a joint venture in Seoul, South Korea, with a Chinese company called Huayou Cobalt to recycle battery materials. We also invested in a project related to lithium metal with a Chinese company in Indonesia, which is to ensure the supply of our battery materials and other products,” he said.

“For the Philippines, we always crave investment from other countries, especially from China, to empower our nickel mines by increasing the added value,” Philippine entrepreneur Gerodias said. “We want to attract foreign investment to ensure that we can integrate into the global supply chain and industrial chain. Currently, for countries with abundant resources like us, it’s urgent to turn our raw materials into processed products for exports.”

Eric Mupona, vice chairman of China Zimbabwe Exchange Center, said President Xi announced at the 2024 FOCAC Summit in Beijing that over the next three years, China would work with Africa to take 10 partnership actions for modernization to deepen China-Africa cooperation and spearhead the Global South modernization. One of them is partnership action for industrial chain cooperation.

Chinese enterprises have advanced technology and rich experience in manufacturing, infrastructure construction and scientific and technological innovation, while Africa boasts abundant natural resources and a large consumer market. Therefore, cooperation in the industrial chain can be complementary and mutually beneficial.

“For example, in the field of agriculture, China’s agricultural technology can help improve production efficiency in Africa, expand agricultural product processing to extend the industrial chain, and increase the added value of our agricultural products, which will not only meet local demands in Africa, but also promote the development of the African economy,” Mupona said.

“We all want to attract foreign investment to ensure that we can integrate into the global supply chain and industrial chain. Currently, for countries with abundant resources like us, it’s urgent to turn our raw materials into processed products for exports.” concluded Gerodias.