As the debate around globalization and deglobalization heats up again after the 2024 U.S. presidential election, the world seems to stand at a crossroads.

Emerging economies and developing countries widely advocate for open trade and economic globalization, highlighting the merits of the free flow of commodities and capital, as well as their strong impetus to world economic growth.

In contrast, some developed countries are more inward-looking, talking more about "losses" from globalization and adopting more tariffs and trade restrictions in the name of protecting domestic industries and jobs. To seek answers, the world is now looking more to the East.

'Failing' global economic governance

The global economy is facing more challenges than before: intensified geopolitical conflicts, increasing trade friction, the slowdowns and downturns of the 2030 Agenda for Sustainable Development, and fluctuations in the global financial market. Many people around the world are asking themselves the same question: Is global governance still viable?

In 2016, the world witnessed a sharp turn to deglobalization triggered by the United States. It comes with a conspicuous feature -- to act in a selective and utilitarian way. Such backlash immediately leads to an "earthquake" at the national, regional and international levels, disrupting the existing global governance institutions, development, trade, investment, and even people-to-people exchanges.

The global economy, trade and investment are among the first to suffer. In the past few years, the United States launched trade wars against the European Union, Canada, China and some other countries and imposed tariffs on goods imported into the United States. The Global Trade Alert report released by the British Center for Economic Policy Research (CEPR) in July 2017 showed that the United States introduced a cumulative total of 1,191 trade and investment restrictions after the financial crisis, 462 more than the second-ranking country, India.

Moreover, the United States' deglobalization policy is widely considered a defining challenge to global governance, marked by its "goodbyes" to international organizations. Since 2016, the United States has withdrawn from a number of international organizations and multilateral international agreements, including the United Nations (UN) Human Rights Council, the Trans-Pacific Partnership (TPP), the Global Compact on Migration, and the Paris Agreement, to name just a few. The withdrawals have triggered widespread concerns that the global community is more fragmented and divided than ever. As UN Secretary-General Antonio Guterres pointed out at the closing of the 78th session of the UN General Assembly, "The United Nations, and the multilateral system itself, is only as effective as Member States' commitment to it."

The backlash erodes people's confidence in the future. The United States' protectionist measures cause turmoil in global trade patterns, block the free flow of international goods and raise prices instead of lowering them. People in the United States have no choice but to make a living under the pressure of skyrocketing prices for goods. Adam Posen, president of the Peterson Institute for International Economics, noted that "The U.S. approach to tariffs and protectionism risks undermining the very economic openness that once made the country a leader in global commerce."

Filling the missing piece

China has long been defined and appreciated as a firm supporter of globalization. At the 2017 World Economic Forum in Davos, Chinese President Xi Jinping said, "Pursuing protectionism is like locking oneself in a dark room. While wind and rain may be kept outside, that dark room will also block light and air." This comparison resonated with global audiences, positioning China as a champion of open trade and signaling its commitment to it.

With its growing development and rising international stature, China is now playing a constructive role in addressing global challenges through expanding cooperation and partnerships. Since the launch of the Belt and Road Initiative (BRI) in 2013, China has fostered a network of economic cooperation, connecting Asia with Africa, Europe, and beyond through joint efforts of all partner countries. To China's partner countries, the BRI represents a chance for infrastructure investment and economic growth. The Global Development Initiative (GDI), proposed by Xi in 2021, has won support from more than 100 countries, and more than 80 countries have joined the Group of Friends of the GDI.

China's role in global economic governance, especially in the G20, has become increasingly important. The G20 is defined as the premium forum for global economic governance. The 2016 G20 Hangzhou Summit placed development issues in a prominent position in the global macro-policy framework for the first time, marking a milestone in China's participation in the global governance system. Eight years on, the legacy of the G20 Hangzhou Summit continues to shine. At the G20 Summit in Rio de Janeiro this year, China advocated a universally beneficial and inclusive economic globalization, again emerging as a champion of multilateralism and globalization.

International economists and politicians have taken note of the contrasting approaches of the United States and China. Pascal Lamy, former director-general of the World Trade Organization (WTO), said that "China's approach to globalization, despite its challenges, aligns more with the trends of economic interdependence that have shaped the 21st century." Lamy and some others also argue that China's proactive strategy allows it to participate more constructively in global governance and enhance its influence on the world stage.

The way forward

China's approach offers a compelling response to complaints about the "losses" of globalization: The solution lies in a more inclusive globalization that benefits everyone, rather than deglobalization, which only deepens divisions. As pointed out by Harold James, professor of history and international affairs at Princeton University, "History suggests the path to taming inflation is through more international trade, not less."

After all, shutting the door to the world means isolating oneself. In the age of globalization, no country can do without interdependency and interconnectivity. History has proven it and will prove it time and again.

Editor's note: The author is a commentator on international affairs, writing regularly for Xinhua News Agency, CGTN, Global Times, China Daily, etc. He can be reached at xinping604@gmail.com.

The views expressed in this article are those of the author's and do not necessarily reflect the positions of Xinhua News Agency and China.org.cn. 

Related

Go to Forum >>0 Comment(s)