CIIE and HQF: The Sun Is Rising Again From The East…

Dear Friends, we often comment on developments related to the Far East, especially China, based on hearsay and clichés that we have heard before. Western countries, especially those closer to the East, are aware that a new world order is being established. In this new order, regional trade collaborations like RCEP will gain importance as win-win spillover effects attract economic entities.

Now, let’s move on to a misperception regarding China. As of now, China is the world’s largest exporter, while the United States is the largest importer. This is something everyone knows pretty well. But is everyone aware that China is the second-largest importer in the world? Not really. Now, let’s look forward to 2035: how many people know that China will be the world’s largest exporter and importer? We can easily derive this from the expectations of the WTO, IMF, and the World Bank. This indicates that China will also be an enormous market for many countries.

Now, let’s put that aside. How many people know that China has long surpassed the "low-labor cost production" approach, that hourly wages are several times higher than its regional competitors, that it has moved from price competition to Knowledge competition, and that it holds 61% of the world's artificial intelligence patents? (Source: "2024 AI Index Report" released by Stanford University in the US https://www.europarl.europa.eu/doceo/document/E-10-2024-001729_EN.html, https://www.globaltimes.cn/page/202404/1311311.shtml)

Within this context, it is essential to correctly evaluate the China International Import Expo (CIIE), an international trade fair successfully operating every year since 2018. This event aims to showcase products and services from various countries worldwide. CIIE creates a platform for overseas suppliers to enter the Chinese market and reach Chinese consumers. Thus, the cliché that “China is closed to the outside world” does not reflect reality. Additionally, I know personally that some Western brands are market leaders in China. Anyway, let’s get back to the facts about the fair.

Many companies and organizations from various sectors (automotive, technology, food, healthcare, etc.) participate in the fair every year, and it also offers opportunities for signing trade contracts and collaborations. CIIE provides significant trade and networking opportunities for both participants and visitors.

The Hongqiao International Economic Forum (HQF) takes place at the same time and same venue with the CIIE. The HQF, focusing on promoting global openness and multilateralism, aims to build consensus among the global community on open development and cooperation through high-level dialogue on hot topics in the global economy. Each November, speakers of influence from international organizations, governments, industry, academia, media, etc. come together in Shanghai to share experience, contribute insights, and propose solutions. Among all the discussions each year under the framework, the HQF Secretariat organizes an international symposium featuring the forum’s flagship publication World Openness Report, which, by constructing a scientific indicator and measurement system, measures the openness of 129 economies since 2008, serving to explore the logic and evolution of and build up global consensus on openness.

The first parallel session of this year’s HQF that caught my attention seems to contain significant details for experts in the region where I live:
“Digital Finance Boosting Global Economic and Trade Development.”

Last year, at the Central Financial Work Conference, which made decisions on "building a strong financial nation," an agreement was reached on five main points regarding the importance of quality development over growth. Among these points is the development of "digital finance." In the context of the rapid development of global digital technology, digital transformation has become an essential driving force for the advancement of various sectors. It is now widely recognized that digital finance has significant importance in enhancing the ability of financial services to support the real economy, promote global economic and trade changes, and accelerate economic globalization.

This session will also discuss how we can promote international cooperation in the digital economy and strengthen global economic and trade development through the advancement of digital finance with participants from governmental officials, businesses, financial institutions, experts, academics, and media representatives. As someone who works on ensuring financial inclusion and integrating everyone into the system through digital finance, I must say that I am particularly interested in this session.

The second parallel session on my “Importance List” is named “High-standard Opening up of Financial Sector Promoting High-Quality Development of Trade and Investment.”

We can summarize the theme as follows: Due to the slow recovery process of the global economy, cross-border trade and investments are facing some interconnected issues and challenges. With resources being scarcer than before and needs constantly increasing, balancing global and national markets and resources, promoting financial transparency, and enhancing global economic and trade liberalization and facilitation will be critical. 

Additionally, establishing connections in financial markets and removing barriers between countries without regulatory obstacles will contribute to the optimization of scarce resources. Naturally, this will provide new momentum for international trade and investment cooperation. 

The speakers at this session will include representatives from both Chinese and other countries' governmental institutions, regulatory authorities, -perhaps the most experienced of this subject- multilateral financial institutions, as well as representatives from multinational corporations and academic think tanks. 

Meanwhile, the issue of increasing trade in national currencies closely interests developing countries. I know that central banks in my country and many other countries are conducting serious work on this matter. Therefore, while liberalizing and facilitating trade and investment, the facilitation of the cross-border use of the Yuan for those trading with China will also be addressed. In addition, the interconnection and liquidity of global and national financial markets will also be among the topics of discussion. 

Finally, I want to mention the “International Cooperation on Standards for High-Quality Development of the Manufacturing Industry,” which is among the topics that interest me the most. The session is hosted by the Ministry of Commerce of the People’s Republic of China and the National Standardization Administration of China.

This session’s focus is, in fact, to reverse a troubling trend: as many countries lose their production capabilities, they are beginning to transform into consumption societies. Manufacturing, however, is the backbone of the economy. Additionally, production is a primary sector for global development. Of course, when we talk about manufacturing today, we are not just referring to factory activities. In a global sense, production is currently in a rapid transformation process. Themes such as intelligent, green, and high-quality development are emerging in manufacturing. Changing and rising standards play a fundamental supportive role for optimization in production and also contribute to addressing the deep integration of multiple technologies in smart manufacturing, ultimately playing a critical role in the continuous advancement of high-quality production.

This session will bring together speakers from internationally recognized organizations in the manufacturing sector, heads of national standardization institutions, academicians, experts, and representatives. Additionally, it will include a panel discussion where manufacturing companies participating in CIIE and distinguished guests will be invited to have an in-depth exchange on the international standards needed, challenges, and future developments in smart manufacturing.

Clearly, as the countdown begins for both CIIE and HQF, I think it would be suitable for those reading this article to seek information from the website https://www.ciie.org/zbh/en/IEF/7th/introduction/. To ensure that we are informed before some developments take place, I emphasize once again the importance of following both the fair and the forum.

Prof. Alkin