China releases Global Supply Chain Promotion Report 2024 and two key indices

By Zhao Li, Chen Tianhao

(ECNS) -- The 2024 Global Supply Chain Promotion report released on Tuesday indicates that in recent years, the pace of technological advancements has accelerated, driving innovation and sustainable development across global supply chains.

The report, offering an in-depth analysis of the latest trends in global supply chains was released by the China Council for the Promotion of International Trade (CCPIT) at a press conference on the ongoing second China International Supply Chain Expo (CISCE).

Alongside the report, two new indices were introduced: the Global Supply Chain Connectivity Index (GSCCI) and the Global Supply Chain Promotion Index (GSCPI). These indices aim to offer a clearer understanding of global supply chain trends and risks, enabling governments and businesses to navigate the ever-changing supply chain landscape more effectively.

The Connectivity Index is the world’s first comprehensive measure of the degree of connection within global supply chains. It evaluates the connectivity logic across upstream, midstream, and downstream components, the internal factors spanning the entire supply chain, and the external factors impacting connectivity.

It reveals that from 2014 to 2023, the Connectivity Index showed a fluctuating upward trend, rising from 0.271 to 0.732—an increase of 170 percent—reaching a historic high. In 2023, the index stood at 0.732, slightly below the 2022 peak of 0.733, with only a marginal decline of 0.001, maintaining a relatively high level over the past decade.

The Promotion Index is the first global quantitative evaluation of supply chain facilitation. Based on a global supply chain facilitation analysis model, it includes metrics such as infrastructure connectivity, the influence of bilateral and multilateral trade rules, the impact of major economies’ policies, technological innovation, and financial service support.

Findings indicate that from 2018 to 2023, global supply chain promotion levels have significantly improved, with the Global Supply Chain Promotion Index rising from 0.27 to 0.66—an increase of 144 percent. This growth demonstrates that the global supply chain promotion environment is on an upward trajectory, with an overall favorable development outlook.

Ren Hongbin, chairman of CCPIT, noted that this is the first time such a comprehensive report on global supply chains has been published. He said that the data-driven insights offered by the report addressed key questions related to global supply chain connectivity and disruption risks, which are of great concern to both governments and the global business community.