BEIJING -- The Made in China 2025 strategy, launched in 2015, is having a positive impact on China's trade already, said a logistics veteran.
That's because demand for Chinese high-tech goods is rising, necessitating world-class logistics, said Steve Huang, 53, CEO of DHL Global Forwarding Greater China, an international provider of air, sea and road freight services.
The 2025 strategy, which aims to upgrade the country's manufacturing sector and turn China into a global manufacturing giant, has been driving up production of Chinese high-tech goods and thus reducing dependence on imports of finished products.
With almost 30 years of experience in the logistics industry, Huang sees the 2025 strategy boosting China's prowess in fields like IT, robotics and biopharmaceuticals, given the already rising business of freight forwarding related to these fields. Exports will likely rise as well, he said.
He has already served DHL Global Forwarding for more than a quarter of a century. "We expect the import of raw materials and electronic parts needed for production will continue to increase, which augurs well for the logistics industry.
"As this translates into greater flow of goods into and out of China, companies will need sound logistics infrastructure and support to enable the smooth movement of their goods across borders. DHL is well-positioned to help our customers enlarge their global footprint and facilitate trade around the world with our global network and comprehensive solutions."
In response to growing air-based trade and the booming cross-border e-commerce in East China, DHL Global Forwarding recently launched chartered bi-weekly flights connecting Incheon in South Korea, Wuxi in China and Frankfurt and Hahn in Germany. This is expected to further facilitate the Made-in-China products to go global.
"China is the world's second-largest economy and is already the largest global trading partner for Germany and South Korea. With China becoming a strong import and export market, coupled with rising domestic consumption, there are opportunities for further trade growth with its partners," Huang said.
"China's push to boost higher-quality global exports and domestic consumer spending will continue to fuel global trade."
The company recently released the DHL Global Trade Barometer results, which revealed that China's imports and exports of industrial raw materials saw major increases in March, buoying the country's volumes for the January-March quarter.
China's economic outlook remains positive for the year 2018. Growth in China's air trade remains particularly strong. Machinery parts and consumer goods are important drivers of Chinese air trade, especially air exports out of China, he said.
As China moves toward higher-value manufacturing, trade with partners will continue but the nature of the import and export commodities will change accordingly, he said.
China's economy is shifting toward a more consumption-and service-driven model. The push to raise high-quality global exports and domestic consumer spending are having the desired effect on trade and future economic development. Key industries like automotive and industrial manufacturing continue to hold strong, he said.
Free trade played a significant role in economic growth and connectivity, Huang said. "Many countries are still focused on free trade and we continue to see FTAs (free trade agreements) being signed.
"As a facilitator of global trade, DHL will continue to play an active role in supporting our customers' aspirations to participate in global trade activities and enable them to do business anywhere in the world."
Born in Taiwan, Huang received a bachelor's degree in traffic and transport management from Feng-Jia University in Taiwan province and an executive MBA from China Europe International Business School in Shanghai.
Since his relocation to Shanghai in 1995, Huang has held a number of senior management positions in marketing and sales, operations, warehousing and distribution, and customer service.
This rich, diverse experience has given him insight into every aspect of the logistics industry, empowering him to deal with changes as and when they emerge.
Huang is currently responsible for DHL Global Forwarding's overall business performance and strategy in China. He spearheads the growth of the company's customer base and operations including the management of more than 3,700 employees in the region. (Source: China Daily)