by Zhao Xiaopeng

 

BEIJING, Mar. 9 (China Economic Net) – The Shanghai Cooperation Organization (SCO) Local Economic and Trade Cooperation Demonstration Area has become a key platform for deepening international economic cooperation and fostering industrial development among member states, according to Jia Shaoqian, a deputy to the National People’s Congress and president of Hisense Group.

 

"The SCO Demonstration Area serves as a new hub for international collaboration, enhancing trade relations between SCO member states and Belt and Road Initiative (BRI) partner countries," Jia stated in a recent interview.

 

Chinese enterprises have intensified capacity cooperation by establishing manufacturing facilities abroad, boosting local employment and industrial upgrades. "In Valjevo, Serbia, where population decline was a long-term issue, investments from Chinese companies, including Hisense, have enabled many Serbian citizens to return home and contribute to local development," Jia explained. "This has bolstered regional economic growth and improved livelihoods."

 

The SCO Demonstration Area supports businesses expanding internationally through various mechanisms.

 

Enhanced logistics channels have improved efficiency and reduced costs. "The area has launched over 3,000 international trains, ranking first in China for sea-rail combined transportation volume," Jia noted. Integration with China-Europe freight trains and Qingdao Port’s shipping networks further optimizes cross-border trade.

 

Policy support and institutional innovation have facilitated market expansion. The demonstration area's "institutional opening-up" mechanism streamlines cross-border trade procedures, helping enterprises achieve stable growth.

 

Hisense exemplifies how Chinese companies leverage these platforms for global expansion. It has exported high-end medical equipment to Indonesia and the UAE, introduced intelligent transportation technology in Southeast Asia, and expanded into Eastern Europe. In Algeria, Hisense partnered with local firms to develop a white goods factory with a production capacity nearing one million units, while an Egyptian television factory is under construction.

 

"By introducing advanced technology and production expertise, local manufacturing capabilities improve, creating thousands of jobs," Jia emphasized. "Companies enhance localized research, production, and sales while expanding markets to meet demand for high-quality products."

 

Despite achievements, challenges persist, including technical barriers, supply chain disruptions from geopolitical conflicts, and financial risks from exchange rate fluctuations.

 

To address these issues, Jia proposed strengthening innovation cooperation, advancing independent core technology, and developing high-end, green solutions to overcome market access restrictions.

 

Diversifying market layouts is also crucial. "Companies should establish overseas R&D centers and localized production facilities to enhance supply chain resilience and reduce reliance on single markets," Jia suggested.

 

Looking ahead, emerging industries such as artificial intelligence, energy innovation, and green development offer vast cooperation potential. China’s strengths in technology, market scale, and institutional innovation can help member states improve digital infrastructure and bridge the digital divide.

 

"Through policy incentives, enterprises can drive innovation," Jia concluded. "Cross-national laboratories for AI and energy innovation will foster new cooperation models and applications."