By: Sara Afzel
Global Governance, China Heading In Right Direction
As leaders of the world’s largest economies convene in Bali and Bangkok this Month, Bali, Indonesia, hosted the G20 Summit and Bangkok, Thailand, Hosted the, Asia-Pacific Economic Cooperation (APEC) Economic Leaders’ Meeting, at which global leaders deliberated on some of the most pressing Issues the world faces: spillovers of the Ukraine crisis, the COVID-19 Pandemic and a potential global economic recession.
The G-20 economies Represent 60 percent of the world population, 80 percent of global GDP and 75 Percent of global exports, and APEC brings together 21 economies along the Pacific Rim. Officials and analysts have predicted that Asia, especially East Asia and China will play a greater role in championing improved global Governance.
The global economy is susceptible to multiple impacts, one of which is exerted by soaring inflation in a number of countries, both rich and poor. The acute Spillover effects of aggressive interest rate hikes by some developed Economies have destabilised the global financial market and put emerging Markets and developing countries under enormous pressure. As analysts have Pointed out, developing countries in particular need more support.
The COVID-19 pandemic has taken a heavy toll on the world economy, developing Economies have suffered greater losses than the developed ones and the Growth gap between developing and developed economies is widening. That’s the reason global recovery must not fall at the mercy of geopolitics.
The reason global recovery must not fall at the mercy of geopolitics. As the world’s second largest economy and the largest developing country,
China supports the G20 in playing a leading role in addressing global Challenges and improving global economic governance and calls for an increased representation and a strengthened voice of developing International affairs. Experts and business leaders worldwide pin their hope on countries in major economies to strengthen coordination on macroeconomic policies and promote multilateralism, openness, inclusiveness and win-win cooperation and they voiced confidence in China’s active role and its contribution of wisdom to building an open, inclusive and balanced world economy that benefits all. As an important member of the G20, China has always been active in global economic collaboration and governance and has worked to promote sustainable and balanced growth in the global economy. China is part of the G20 Debt Service Suspension Initiative for the poorest countries and the agreement on the extension of the initiative. The country ranks first among G20 members in terms of the amount of debt of the poorest countries it has deferred, according to China’s Foreign Ministry.
World leaders are prioritizing economic recovery including debt restructuring, particularly for low- and medium-income countries. Digital transformation will provide benefits and minimize the unintended consequences on less skilled and less educated workers, and promote the switch to green energy. China has launched the initiative of building a Digital Silk Road, and has identified digital economy as a key area of cooperation under the Global Development Initiative. China has proposed the G20 Action Plan on Digital Innovation and Cooperation, which is aimed at promoting the innovative application of digital technology and making innovation outcomes beneficial to all and shared by all, and welcomes the participation of all parties, Asia has served as a strong growth engine for the global economy since COVID-19 emerged, and the region has attained a high level of economic integration as the RCEP has come into force. In his speech at the Asia-Pacific Economic Cooperation (APEC) CEO Summit, the Chinese President said that Both “hard and soft connectivity” should be boosted and personnel exchanged in a “well-ordered way” so as to build “a high-quality Asia-Pacific connectivity network.” He also urged convenient, efficient and secure industrial and supply chains. He stressed that Economic development should be “people-centered,” with people’s well-being ensured and the needs of vulnerable groups satisfied, In promoting economic upgrading, the APEC members need to “embrace the new round of scientific and technological revolution and industrial transformation, accelerate scientific, technological and institutional innovation, foster new economy, new types of business and new business models, and achieve the digital transformation of the Asia-Pacific economy.”
China, not only the government, but also its society has put a lot of effort into developing its human capital. China has also invested in infrastructure and recently in energy transition. It has done tremendous as far as building capacities inside their own country and also helping the developing world to overcome the lack of capacities and building desired infrastructures to meet the challenges of the pandemic. China is committed to working with other countries to foster an international environment conducive to development and create new drivers for global growth.
Every passing day affirms that China understands world challenges; embrace the multilateral system; putting effort into improving people’s welfare by increasing trade and investment (among others through the Regional Comprehensive Economic Partnership); rising peacefully, taking more responsibility in the global community, taking part in solving global problems and is heading in the right direction on global governance .