(Yicai) June 6 -- The Yangtze River Delta zone, the most economically developed region in China, is seeing industry alliances of upstream and downstream sectors becoming important factors in its industrial structure upgrading and innovation development, according to a new report.

The Yangtze River Delta Entrepreneurs Alliance has been promoting the construction of supply chain alliances since four years ago, further accelerating the rapid implementation of new quality productive forces development, a report by the entrepreneurs union showed yesterday.

Since 2020, 19 supply chain alliances have been established, including for high-end medical devices and green transportation. Ten unions relate to the digital economy, including software and information services, smart retail services, smart cities, digital health, artificial intelligence, and digital creativity.

The 19 alliances are all initiated by leading companies. For example, Liu Qingfeng, chairman of AI technologies developer iFlytek, initiated an AI union.

Having leading enterprises take the initiative can form industrial clusters within the region, Deng Zhituan, a researcher at the Shanghai Academy of Social Sciences, told Yicai. The strength and influence of leading firms can also drive the development of upstream and downstream companies in the supply chain, enhancing its overall competitiveness, Deng added.

The Yangtze River Delta region supply chain alliances have enhanced industrial development in ten areas, including innovation collaboration and core technologies, according to the report.

Leading enterprises need to be "pacesetters," Deng noted. They need to share key technology development ideas with supply chain firms and open up business and operational data to help elevate the chain's overall level, Deng added.

In addition, these alliances can participate in setting up relevant industry standards to facilitate regional collaboration and the development of the supply chain, Deng said. The governance mechanisms of the chain should also be paid attention to, Deng pointed out.

Editor: Martin Kadiev