Sir John Parker, Chairman of Rio Tinto Group: Geopolitical tensions and protectionist policies have disrupted the global supply chain
1min read The second China International Supply Chain Promotion Expo opened in Beijing in the morning of November 26. BHP Group Chairman J. P. Gowen called for the reconstruction of an integrated global industrial and supply chain to promote economic growth while addressing the most important climate change issues the world faces.
He said that in recent years, there have been calls for "decoupling" and "disconnection", which have undermined the economic interdependence of countries. He noted that just a few years ago, the world was still benefiting from economic integration, achieving economic takeoff through trade, especially in China, India and other countries, which have achieved remarkable economic development in the past few decades. According to the World Bank's prediction, a 1% improvement in international supply chains can bring a 1% increase in per capita income. However, in recent years, the global supply chain system has shown "cracks".
Gowen said that geopolitical tensions and protectionist policies not only disrupted the global industrial chain but also caused inflation to grow and threatened countries' ability to address common challenges, including poverty, inequality and climate change. "China's manufacturing capabilities have significantly reduced the cost of clean energy, especially solar panels and batteries. McKinsey recently predicted that if the world were to exclude China, the cost of energy transition would rise by 20%, equivalent to US$6 trillion, which would significantly affect the world's carbon reduction process and economic prosperity," he said.
It is reported that BHP Group operates in 35 countries around the world, producing iron ore, copper, aluminum and key minerals. Now, China is increasingly becoming an important source of goods and services in BHP's global operations. BHP supplies about 250 million tons of iron ore to China every year, providing important steelmaking raw materials to support China's industrialization and urbanization.
"There is a Chinese saying that goes, 'One string cannot make music, and one tree cannot make a forest.' The more challenges we face in the future, the more we need closer cooperation, and a globally interconnected and resilient supply chain and industrial chain will certainly create greater value," he said.
