GENEVA, CH.- China has not missed the opportunity to come and deliver a clear message at the headquarters of the World Trade Organization (WTO) : “We will guide the future of economic globalization on the right path . ”
This statement comes from Hongbin Re, president of the China Council for the Promotion of International Trade (CCPIT) , one of the largest business chambers in the Asian country , who is actively participating in the WTO Public Forum .
No wonder. China has been gaining ground since joining this multilateral organization in December 2001. It is currently the world’s largest trader and trading partner for more than 100 countries ; it is also the largest export market for more than 40 countries and also the largest foreign market for multinational corporations such as Apple or BMW, among many others.
Hongbin Re did not forget to mention that economic globalization is taking on a new dimension, but the multilateral trade system is under threat , in a clear reference to the signs of trade protectionism that have recently been triggered.
For example, the European Union decided to adopt one of its largest trade defence measures in recent times in the middle of this year, with the increase of tariffs on electric vehicles manufactured in China from 17.4% to 37.6%, in addition to the existing 10 percent.
“We should open up, not close ourselves off. We should pursue integration, not decoupling. We will firmly uphold the multilateral trading system and guide the future of economic globalization on the right path,” said Hongbin Re, speaking at the session Resilient and Greener Supply Chains for Cross-Border E-Commerce during the Public Forum.
He also recalled that this week the Chinese government changed course by removing all restrictions on foreign investment in the country’s manufacturing sectors.
“We will foster a world-class business environment that is market-oriented, law-based and globally grounded, promote high-quality cooperation and build a new system for a top-level open economy. China’s rapid development will definitely create new opportunities,” said the representative of more than 100,000 Chinese companies.
Greener digital commerce
During the session on e-commerce, participants expressed concern about the rapid growth of this activity and its resulting pollution footprint in the world.
The United Nations Conference on Trade and Development (UNCTAD) has calculated, through data provided by 46 developed and developing countries, representing two-thirds of the world’s gross domestic product (GDP), that between 2016 and 2022, e-commerce sales increased from $17 trillion to $27 trillion , driven by the Covid pandemic.
The United States and China stand out here. In the same period, the former saw its e-commerce sales grow from seven billion to 11 billion dollars, while in China the amount tripled from 1.6 billion to 4.5 billion dollars.
As for cross-border e-commerce , it is estimated that of the 27 trillion dollars, only three trillion belong to this international activity.
The UNCTAD report also identifies that the gross value of goods traded on the world’s largest e-commerce platforms increased from $2.6 trillion in 2019 to $4.2 trillion in 2020, with only four platforms accounting for two-thirds of this value, three of which are of Chinese origin.
This has led to an excessive pollution footprint, which is why more urgent measures have been sought.
“Governments could set up regulatory frameworks and more incentives for sustainable business practices, and businesses can innovate and integrate them. Governments could regulate excess packaging and returns, promoting reusable and biodegradable materials, while businesses can do more to eliminate single-use plastics, avoid unnecessary packaging and implement fees and technology to reduce returns,” according to Torbjörn Fredrikkson, head of UNCTAD’s Division on E-Commerce and the Digital Economy, who also participated in the Public Forum session.
However, there is still greater concern not only about the solid waste that e-commerce generates every day, but rather the spectrum that concentrates the entire digital economy has caused an increase in the demand for electric energy.
From 2022 to 2026, global data center electricity consumption is expected to grow from 460 terawatt hours to 1,000 terawatt hours. This is more than the entire African continent produces in electricity in one year.
“This shows a bit of the magnitude of data centres in terms of consumption and electricity, so we need to think about how we make digital greener,” said the UNCTAD representative.
This situation forces all participants in the world to consider a greener value chain, although efforts have so far been incipient.
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