   
  
WT/GC/W/891  
 
12 July 2023  
(23-4710) Page: 1/3 
General Council  Original: English  
 
  
STRENGTHENING THE RESILIENCE AND STABILITY OF GLOBAL INDUSTRIAL AND 
SUPPLY CHAINS  
COMMUNICATION FROM CHINA  
The following communication, dated 11 July 2023, is being circulated at the request of the delegation 
of China.  
 
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1  BACKGROUND  
1.1.  The formation of global industrial and supply chains is a gradual process resulting from 
international trade and investment. Maintaining their stability is crucial for the smooth operation of 
international economy and trade, wh ile free flow of trade is essential for the stable development of 
these chains.  
1.2.  From the 1980s to the early 2000s, the global industrial and supply chains operated smoothly 
and efficiently, and the global economy secured rapid growth of more than 3% in mos t years. These 
chains have not only driven the growth of developed countr y Members  and large multinational 
corporations, but also underpinned the prosperity of developing country M embers and micro, small 
and medium -sized enterprises (MSMEs).  
1.3.  However, these  chains are exposed to risks and vulnerabilities such as political conflicts, policy 
interference, and force majeure like natural disasters. After the 2008 global financial crisis, some 
Members took protectionist measures that negatively impacted the stabi lity and connectivity of 
global industrial and supply chains. To address this situation, the G20, APEC, and other mechanisms 
have pledged both standstill and rollback of such protectionist measures. At the request of G20 
Members, the WTO and other internat ional organizations have been monitoring  trade and investment 
measures of their Members on a regular basis and in an effective manner  since 2009 . 
1.4.  The Multilateral Trading System with the WTO at its centre  has played a positive role in the 
smooth and effici ent operation of industrial and supply chains. In recent years, global industrial and 
supply chains have faced severe disruptions due to the combined impact of COVID -19, geopolitical 
conflicts, and trade frictions. Supply shortages and chain disruptions ha ve occurred frequently, 
adversely affecting the normal economic operations of many Members.  
1.5.  Those disruptions hindering global trade have drawn high attention from the WTO. In 
March  2022, the WTO Secretariat hosted the first Global Supply Chains Forum to e xplore causes and 
solutions for the soaring freight costs and transport congestion hindering global trade, and to 
promote understanding and collaboration among stakeholders from every link in global supply 
chains.  In February  2023, the WTO Secretariat rele ased a report showing that the opportunity costs 
of decoupling into two rival blocs relative to more liberalization are estimated at 8.7% of real income 
at the global level, varying between 6.4% for developed countr ies, 10.1% for developing countries, 
and more than 11.3% for least  developed countries. Under such circumstances, it would be more 
difficult for poor countries, small and vulnerable economies, landlocked developing countries, as well 
as MSMEs to integrate into the global industrial and supply cha ins. They might even be squeezed 
out of those chains, further exacerbating global development imbalance.  Nevertheless, some WTO 
Members have adopted good practices in this field.  WT/GC/W/891  
 
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  1.6.  Industrial and supply chains take shape as the result of global division of labour  against a 
background of economic globalization. They represent important global public good s. Only by 
maintaining the resilience and stability of global industrial and suppl y chains can the cake of the 
world economy become bigger and more benefits be delivered to the people of all Members. As the 
post-pandemic economic recovery enters a critical stage, it is more urgent than ever to maintain the 
stability of global industrial  and supply chains. An open, non -discriminatory and predictable 
Multilateral Trading System is helpful for alleviating the adverse impact of supply shortages on 
industrial chains. WTO Members should adopt a responsible attitude, strengthen cooperation, res tore 
the stable operation of global industrial and supply chains as soon as possible, and promote steady 
recovery of the world economy.  
2  PROPOSAL  
2.1.  Taking into account the aforementioned factors, China proposes that the 13th WTO Ministerial 
Conference issue a  joint Ministerial Statement as follows:  
Recalling  the MC12 Ministerial Declaration on the WTO Response to the COVID -19 Pandemic and 
Preparedness for Future Pandemics on the importance of preventing unnecessary disruptions in 
supply chains;  
 
Emphasizing  that maintaining the openness, efficiency, stability and resilience of the global and 
regional supply chains is crucial for promoting international trade and investment;  
 
Reaffirming  that the Multilateral Trading System provides institutional safeguards f or enhancing the 
resilience and stability of industrial and supply chains;  
 
Taking into account  that developing country Members  and MSMEs are among the most vulnerable 
to supply chain shocks;  
 
Recognizing  that the restrictive measures related to the pandem ic, geopolitical conflicts, coupled 
with protectionist and unilateral measures, have severely impacted global supply chains;  
 
Acknowledging  and respecting the differences among WTO M embers in their respective development 
stages and domestic circumstances;  
 
2.2.  WTO Members agree to cooperate in the following areas:  
1. Endeavor to promote openness and inclusiveness, firmly uphold the multilateral trading system, 
abide by WTO rules, strengthen the resilience and stability of global industrial and supply chains, 
and promote global division of labour  and cooperation.  
 
2. Promote trade liberalization and facilitation, oppose protectionism and unilateralism, reduce 
unnecessary trade barriers, and jointly foster a free, open, fair, non -discriminatory, transparent and 
predictable market environment.  
 
3. Make efforts to remove trade restrictions related to the COVID -19 pandemic and avoid disruptions 
to global industrial and supply chains. Implement the MC12 Ministerial Decision on TRIPS, decide as 
soon as possible on its e xtension to cover COVID -19 diagnostics and therapeutics, and enhance the 
capacity of developing country Members  to participate in the industrial and supply chains of vaccines, 
diagnostics, therapeutics, and other products.  
 
4. Implement the WTO Trade Facil itation Agreement (TFA). Strengthen exchanges and cooperation 
in areas such as simplifying and streamlining customs procedures, improving international logistics 
efficiency, and enhancing connectivity. Encourage more collaboration among international logis tics 
companies to ensure smooth transportation in supply chains. Fully leverage the WTO Trade 
Facilitation Agreement Facility (TFAF) to provide technical assistance and enhance capacity building 
to developing country Members . 
 
5. Strengthen exchanges and c ooperation on trade in services to address barriers to trade in 
services. Facilitate cooperation activities among government authorities, industry associations, 
businesses and the academia on areas such as business opportunity matchmaking, capacity buildin g, WT/GC/W/891  
 
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  trade in services statistics, trade in services standards, and professional service and related business 
services.  
 
6. Make efforts to deepen cooperation in technological innovation and cooperation, focus on trends 
in technological development, and enco urage enterprises of different Members to cooperate in joint 
technological research and development in various segments of industrial and supply chains, to 
jointly promote technological progress and industrial development.  
 
7. Encourage green ways of life and work, promote the application of green technology, green 
manufacture, and green products in various fields and segments, jointly build green and low -carbon 
industrial and supply chains, and avoid protectionism in the name of the environment, to ad dress 
climate change, environmental pollution, resource shortage, and other common global challenges 
facing humanity.  
 
8. Explore the opportunities brought by the digital economy and digital technologies, tap into the 
important role of new -generation infor mation technologies in promoting industrial upgrading and 
economic recovery, advance innovation and application of new technologies, strengthen cooperation 
in industrial ecosystems, work to accelerate the development of digital, networked and intelligent 
industries, and facilitate the transformation of production modes. Deepen exchanges and 
cooperation in e -commerce, promote the wide application and development of e -commerce around 
the world, and accelerate the formulation of international rules for e -comme rce. 
 
9. Encourage key industries such as integrated circuits, new energy, and biomedicine to make better 
use of global resources, support businesses in cooperation with their upstream and downstream 
partners along their industrial chains, and jointly ensu re sustainable supply in key sectors.  
 
10. Take into full consideration the challenges faced by developing country Members , especially the 
LDC Members, as well as MSMEs, and encourage other Members to provide capacity building and 
technical assistance to h elp them increase added value and integrate into global and regional 
industrial and supply chains.  
 
11. Encourage Members to share best practices and case studies on improving the resilience of 
industrial and supply chains with measures in compliance with WTO rules to increase crisis 
responsiveness at the Council for Trade in Goods and other relevant WTO regular meetings.  
 
12. Encourage the WTO Secretariat to conduct comprehensive studies on industrial and supply 
chains, to enhance dialogues with relevant i nternational organizations, the private sector and the 
academia, and to put forward policy recommendations on the basis of such dialogues to promote 
the stability and development of global industrial and supply chains.  
 
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