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International Relation

Interview: China a stabilizer and innovation hub in global supply chains, says Schneider Electric executive

July 15, 2025


Abstract : China's dual role as both a stabilizing force and a driver of innovation in global supply chains is gaining greater prominence, as companies worldwide confront mounting uncertainty, rising operational costs and climate-related challenges, a senior Schneider Electric executive has said.

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A staff member works at an exhibition area for humanoid robot industrial chain of Hubei Province at the digital technology section of the upcoming third China International Supply Chain Expo (CISCE) in Beijing, capital of China, July 14, 2025. (Xinhua/Ju Huanzong)

BERLIN, July 15 (Xinhua) -- China's dual role as both a stabilizing force and a driver of innovation in global supply chains is gaining greater prominence, as companies worldwide confront mounting uncertainty, rising operational costs and climate-related challenges, a senior Schneider Electric executive has said.

In a recent interview with Xinhua, Yin Zheng, executive vice president of Schneider Electric's China & East Asia Operations, emphasized that China's fully integrated industrial system places it in a unique position within the global supply chain landscape.

"The traditional efficiency-driven model is no longer sufficient," Yin said. "What the industry needs now are supply chains that are not only efficient but also resilient and green, a view that is increasingly shared across sectors."

Yin's remarks came ahead of the third China International Supply Chain Expo (CISCE), the world's first national-level event focusing on supply chains. He described the expo as a timely platform for global manufacturers to engage in international dialogue and deepen industrial cooperation amid ongoing global uncertainties.

"That's why we're taking part," he said. "The expo is a window to connect China with the world and a new calling card for China's high-level opening up."

For multinationals like Schneider Electric, CISCE is more than a platform to showcase innovation; it provides a valuable opportunity to identify new partners and explore ways to transform and upgrade industrial supply chains, he added.

Yin highlighted China's vast manufacturing capacity, comprehensive industrial ecosystem and steadily improving business environment, factors that continue to position the country as a key destination for global firms seeking to strengthen and diversify their supply chains.

"China is a vital engine of global growth," he said, adding that the rise of new quality productive forces in China, especially in digital and green development, offers a broader platform for technology-driven companies.

Since entering the Chinese market in 1987, Schneider Electric has steadily expanded its presence. The company collaborates with over 1,600 local suppliers, and as a result, China has become its second-largest market globally.

"In recent years, we've accelerated investment by establishing new R&D centers and upgrading our factories," Yin said, citing the company's Shanghai Putuo factory as an example. The facility has extensively integrated AI and other digital technologies into key processes, leading to an 82 percent increase in per capita productivity and a 67 percent reduction in make-to-order time.

Yin said that China's industrial ecosystem is increasingly characterized by openness and collaboration, with more companies embracing joint innovation and knowledge sharing.

"We're seeing a growing number of Chinese firms taking the lead in driving innovation and collaboration," he said. "That energy is accelerating the upgrade of the entire industrial chain."

Looking ahead, Yin noted that the global industrial landscape is undergoing profound transformation, driven by the rapid advancement of AI and the accelerating push toward sustainability. To fully harness these trends, he called for closer collaboration among industry, academia and the government.

"Digitization and green transformation are fundamentally reshaping how global supply chains operate," he said. "Schneider Electric will continue to tap into China's development momentum and collaborate with local partners to apply emerging technologies throughout the supply chain."

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Keyword: China International Supply Chain Expo Schneider Electric

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