Stable supply chains smooth economic circulation

Editor's note: China released regulations for industry and supply chain security in April. China Economic Times spoke to Wei Jigang, a researcher at the Development Research Centre of the State Council, on the resilience and security of the country's supply chain system. Below are excerpts of the interview. The views don't necessarily represent those of China Daily.

Supply chains represent a form of core competitiveness, reflecting a country's ability to coordinate production, match supply with demand, manage risks and improve efficiency. Supply chains have increasingly become a governance tool tied to industrial development, security guarantees and international cooperation.

Domestically, supply chains are critical to ensuring smooth economic circulation and unlocking the advantages of China's vast domestic market. Internationally, they are a strategic instrument for participating in global competition, expanding development space and safeguarding national interests.

For industries, they serve as the driving force behind technological upgrading and high-quality growth. From a security perspective, they protect against external shocks and ensure stability in critical sectors.

The development of high-quality industry chains requires coordinated efforts across strategic planning, technological innovation, digital transformation, security protection and ecosystem building.

First, China should strengthen its top-level institutional design and improve its strategic support systems. Supply chain development should be incorporated into national development plans, while cross-regional and cross-sector coordination mechanisms should be enhanced.

The legal and regulatory framework needs improvement. Greater support should be provided in finance, technology, talent and industrial policy to foster globally competitive leading enterprises as well as specialized and innovative small and medium-sized firms.

Second, China should focus on key sectors and strengthen both weak and competitive links. Tailored policies should be introduced for major industries such as manufacturing, energy, food security, information technology and transportation. For bottleneck technologies such as semiconductors, machine tools and critical components, resources should be concentrated on achieving technological breakthroughs and greater self-reliance.

Meanwhile, China should consolidate its advantages in areas such as new energy, 5G, high-speed rail and construction machinery to strengthen its position in the global industrial competition.

Third, digital and intelligent technologies should drive supply chain modernization. Under the national action plan for digital and intelligent supply chains, technologies such as big data, artificial intelligence, the internet of things and blockchain should be more deeply integrated into supply chain management.

Fourth, development and security must be advanced together. China should establish a multilevel supply chain security framework featuring risk monitoring, early-warning systems, stress testing and emergency response mechanisms for critical sectors.

Strategic reserves and emergency production capacity for key products should also be improved. In addition, legal and policy tools should be strengthened to address external risks and safeguard China's supply chain security against containment and disruption.

Finally, green and open development should remain central to the country's future supply chain strategy. China should accelerate the transition toward low-carbon supply chains by promoting green procurement, green manufacturing and environmentally friendly logistics systems.