China’s new development plan will maintain the pace with most development areas globally. New platforms and tech innovations have great potential in China, as noted by the former World Bank economist Justin Yifu Lin. Justin, who also an Honorary Dean at the National School of Development at Peking University, shared his business views at the Global Supply Chain Summit (GSSC).
Adapting to change
Justin highlighted that the economy worldwide has significantly been impacted by the Pandemic. Justin Lin highlighted that there’s a need for companies and enterprises to make use of international and domestic markets. He insists that domestic and international markets and resources can support each other through a “dual circulation” business model.
In every country, there’s always an upside and downside of an economy. However, Developed countries are better placed. Justin Lin noted that developed countries have high-tech industries, capital intensive investors, and intense based production and demand. China also has some comparative advantages in traditional businesses, such as the processing industries that require intense labor.
JD.com expansion to international markets
In the supply chain business, the supply chain business is vital for both local and international markets. Early in 2018, during the GSSC summit, JD logistics announced the expansion of its international logistics company. The expansion was set to cater for connectivity by attaining two-day shipping to other countries from China.
Today JD is managing and operating 110 warehouses in other countries, supporting export, import, and local e-commerce businesses such as Indonesia and Thailand.
The company, owned by Chinese billionaire Richard Liu, plans to upgrade its low tier market plan. In China, they provide over a thousand counties and townships with distributor service. JD plans to provide a 24-hour delivery and includes constructing and expanding 13 local transfer centers and warehouses.
The CEO of JD Logistics also mirrors Justin Lin’s point on using the advantage of international markets. While speaking at GSSC, Wang said the company aims to launch a logistics enterprise headquarter in China. The enterprise’s primary purpose will change the connectivity of the world and promote growth and openness.
In the new wave of industrial and technological revolution, there’s been a rise in opportunities and business connectivity for logistics. Wang highlighted that tech and logistics integration has changed how the world is connected.
About Richard Liu
According to Bloomberg’s Billionaires Index, Liu is ranked 81st. He is worth 19.3 billion dollars. Richard Liu is the CEO and founder of JD.com, China’s largest online e-commerce business platform in revenue. Liu is a self-made billionaire at 47 years of age with the biggest asses share in JD’s equity shares in the market. The company based in Beijing began its journey in Nasdaq in 2014.JD.com has 380 million customers who actively trade on the website and recorded 577 billion Yuan in 2019.
Liu was born in Suqian, in Jiangsu province. He studied sociology at Beijing’s Renmin University, where he started coding in his spare time. He also doubled by starting a restaurant around his campus that left him in debt after the staff misused the business money. After completing campus, his next venture was in selling magneto-optical products in 1998.
Revolutionizing the retail sector
After the SARS epidemic that crippled Chinas retail industry, he closed his stores in Zhongguancun, considered China’s tech hub, and focused on online marketing and Technology logistics. His company started with the name 360buy Jingdong. He, however, developed the e-commerce platform into China’s second-largest company in the e-commerce sector.
After consistent volume growth, the company rebranded in 2014 to JD.com. In the same year, JD.com, under Liu’s management, achieved 1.8 billion dollars on Nasdaq.
