HANGZHOU, China, June 24, 2025 — As Globalization 3.0 dawns, characterized by both rising “de-globalization” sentiments and the aggressive international expansion of Chinese companies, the “Born to Be Global” 2nd Global Summit of Chinese Enterprises Going Overseas and the 2025 Mid-Year Industry Summit convened at the National University of Singapore from June 19-20, 2025.
The summit, a joint effort by Hangzhou Ba Jiu Ling Cultural Creative Co., Ltd., Jidang Business Studies, and the Sino-Commercial Overseas Industrial Alliance (SCOIA), and co-organized by C&D Inc., hosted over 50 political and business leaders, representatives from global business associations, and more than 1,000 corporate delegates from China and other countries to discuss the latest trends and opportunities in global expansion.
C&D Inc., a leading supply chain company, was invited to share its expertise on using futures to help global businesses manage commodity price volatility in international markets.
Li Zhi, General Manager of the Futures Management Department of the Risk Control Center, C&D Inc., giving a keynote address at the summit.
Li Zhi’s speech, “Proactive Risk Management: Tackling Supply Chain Black Swans,” addressed the major challenges faced by Chinese companies expanding globally. He provided a systematic analysis, drawing on historical examples and innovative strategies, of how futures can stabilize global supply chains.
Li Zhi’s presentation emphasized three key concepts in price risk management: Breakthrough, Exploration, and Transformation.
Breakthrough: From the “Soybean Incident” to Financial Tool Innovation
Li Zhi opened his speech by recalling the 2004 “Soybean Incident,” a crisis that impacted China’s grain and oil industry. The international soybean market experienced extreme volatility over six months, with prices fluctuating by over 50% due to factors like the Chicago Board of Trade (CBOT) price discovery mechanisms. This was a severe blow to China’s soybean processing industry, which relied heavily on imports. He stated that nearly 1,000 Chinese firms went bankrupt, with 85% of processing capacity transferring to foreign ownership, resulting in over 15 billion yuan (approximately USD 2.1 billion) in economic losses.
This crisis spurred change. According to Li Zhi, using futures instruments helped reduce soybean price volatility from 1,300 cents to 210 cents per bushel—an 85% decrease. This has been crucial in preventing similar crises since the “Soybean Incident.”
Using futures to manage price volatility is now essential for companies operating in international markets.
Exploration: C&D Inc.’s Three Core Practices
Many Chinese businesses still lack familiarity with using futures in global markets. Li Zhi cited data indicating that 98% of Fortune 500 companies use financial derivatives for hedging, compared to only about 30% of non-financial A-share listed companies in China.
With 40 years of international experience, C&D Inc. is a leading Chinese company in strategically using financial derivatives in the supply chain sector.
Li Zhi explained how C&D Inc. has developed a framework for using futures, built on three core elements: risk control, business operations, and research. He summarized this approach with the principle: “Risk control comes first, business forms the foundation, and research supports the base.”
Transformation: From Managing Its Own Risks to Empowering Others
As C&D Inc. has gained experience with futures, it has integrated its futures framework into its supply chain services. By using these tools, the company has helped over 900 industrial clients create strong risk management strategies, enabling stable upstream pricing, consistent midstream margins, and predictable downstream costs.
According to Chinese financial commentator Wu Xiaobo, C&D Inc. has transformed its externally driven resource integration capabilities into internally driven service delivery, offering complete support across information, logistics, and finance.
As Chinese companies enter this new phase of globalization, companies like C&D Inc., with extensive operational experience and strong overseas supply chain capabilities, must share their knowledge and resources. This will allow Chinese firms to expand globally more professionally, securely, and efficiently.
In closing, Li Zhi stressed that only by building a shared risk-bearing mechanism can Chinese companies navigate the turbulent global environment and achieve sustainable success.
“One struggles alone, but thrives together.” This highlights C&D Inc.’s forward-thinking practices and calls for Chinese companies to build collective resilience in managing global risks.
Organization: Hangzhou Ba Jiu Ling Cultural Creative Co., Ltd
Contact Person: Daisy Xing
Website:
Email:
Disclaimer: This press release is provided by Hangzhou Ba Jiu Ling Cultural Creative Co., Ltd. The statements, views, and opinions expressed are solely those of the provider and do not necessarily reflect those of this media platform or its publisher. Any names or brands mentioned are used for identification purposes only and remain the property of their respective owners. No endorsement or guarantee is made regarding the accuracy, completeness, or reliability of the information presented. This material is for informational purposes only and does not constitute financial, legal, or professional advice. Readers are encouraged to conduct independent research and consult qualified professionals. The publisher is not liable for any losses, damages, or legal issues arising from the use or publication of this content.
“`
