XIA Lu: What We Can Expect from APEC and G20?

Earlier last week, most people from different parts of the world still paid attention to the General Election of the United States, which now resulted in the victory of the GOP in both the executive and legislative branches, adding more complexity and uncertainty to the world in the future. From this week onwards, two major multilateral meetings, APEC in Peru and G20 in Brazil, will take place in Latin America. These mechanisms provide an opportunity and serve as a platform to advocate economic cooperation while also enhancing communication among members.

In the era of complex global dynamics, China's consistent contributions and active engagement in multilateral forums have been pivotal in shaping a new type of international relations based on cooperation and mutual benefits. Across President Xi Jinping's keynote speeches at various multilateral forums, certain recurring themes emerge: openness, inclusiveness, innovative growth, connectivity, equality, win-win cooperation, and enhanced governance. It is worth considering why economies should adopt these principles, how they can implement them effectively, and what it takes to sustain them in the coming decades.

What motivates the members to cooperate formutual benefit and win-win outcomes?

The world today is in the midst of a profound and complex process of globalization, and all members of the international community tend to present differing views and propositions on the trends and direction of the international order based on their own interests and perspectives. From a general standpoint, with the continuous shifts in the international structure, the global order will inevitably transition from being dominated by superpowers to a multipolar framework. However, this process is bound to be long-term and complex, and the contest between the concept of a unipolar order and the idea of a multipolar order remains intense at times. In recent years, in the face of various global challenges, there has been, on the one hand, an increasing urgency for countries to stand together and collaborate to overcome difficulties, while on the other hand, certain countries continue to follow a unilateralism path, interfering in the internal affairs of others.

The demand for effective resource allocation on a global scale has also become urgent. Different countries have varied endowment advantages in terms of natural resources, labor, capital, and technology. For instance, the Middle East region has abundant oil reserves; developing countries like China have vast labor resources and robust manufacturing bases; and Western developed countries, such as the United States possess technological research, development (R&D), and capital advantages. Through international cooperation, most members of the international community can achieve optimal resource allocation on a global scale, enhance production efficiency, and promote the common development of all economies. For example, some members of APEC can integrate their natural resources with the technology and capital from other members to develop valuable products and industries.

Additionally, cooperation can help address challenges towards global governance. History has repeatedly shown that the law of the jungle is not a sustainable path for human coexistence, and reckless and fierce competition does not lead to a better world. Against the backdrop of deepening economic globalization and in the face of common problems and increasingly severe global challenges – such as climate change, public health crises, and terrorist activities – no country can stand alone without cooperation.

Climate change is a global environmental issue that affects all nations. Impacts such as rising sea levels and increased extreme weather events transcend national borders. Countries need to work together to set emission reduction targets and response strategies, such as jointly reducing greenhouse gas emissions and developing renewable energy under the Paris Agreement. Developed countries can leverage their advanced technological advantages to help developing countries achieve a green transition. In contrast, developing countries can actively participate in actions to jointly address the challenges brought about by climate change.

Public health crisis such as pandemics, spread quickly and widely. Countries must cooperate on virus surveillance, vaccine development and distribution, and the provision of medical supplies. Only through global cooperation can we effectively control the spread of the epidemics, safeguard human life and health and ensure global economic stability.

Transnational crimes – including but not limited to cybercrime, drug trafficking and human trafficking – as well as terrorist activities, threaten the security and stability of countries worldwide. International cooperation is essential for intelligence sharing and joint law enforcement operations. Law enforcement agencies from different countries need to work together to combat transnational criminal networks and terrorist organizations through platforms such as Interpol, thereby maintaining peace and security in the international community.

Why can members cooperate with each other?

As one famous philosopher argued, "men's capacity for injustice makes democracy necessary, yet men's capacity for justice makes democracy possible." Despite facing a series of challenges in the international political and economic situation, members' inclination and capacity for seeking and maintaining peace, rules, orders have provided a strong potential for cooperation. At present, most countries agree and align with the proposition that peace and development remain the key theme of our time. Since the end of the Cold War, cooperation is no longer limited to economic and trade fields; it has expanded to multiple levels, including government, cultural education, social governance, and environmental improvement. Through mutual respect and equal treatment, countries can pursue their own interests while also taking into account the legitimate concerns of other countries, thus achieving the maximization of common interests.

In addition, the concept of win-win cooperation has also been widely recognized and supported by the international community. For instance, under the Belt and Road Initiative (BRI), China has emphasized common development through cooperation, allowing all involved parties to share the fruits of progress. This concept not only helps address various current problems and challenges but also promotes world peace and development.

The concept of multilateralism in the international order has gradually taken root in most countries. Within frameworks like the United Nations and other international organizations, countries resolve international issues through consultations and negotiations. This multilateral cooperation mechanism enables countries to express their views and interests on an equal footing, jointly formulate international rules, and foster stability of the international order and cooperation among countries.

Potential sources of conflict, such as border security issues, can also be mitigated through cooperation. For instance, economic cooperation projects among Central Asian countries and between them and neighboring powers, such as energy pipeline construction, have not only strengthened economic ties but also enhanced regional security and stability. At the same time, in order to balance the influence of external forces, some nations strengthen cooperation with neighboring countries. For example, in the face of external power competition, ASEAN countries have strengthened internal solidarity and cooperation to amplify their voice in regional affairs.

Container cranes and rail-mounted gantry cranes shipped from China arrive at the Chancay Port in Peru, June 27, 2024. / Xinhua

How to advance and sustain cooperation?

What roles has China played?

Innovation-driven strategy is crucial for both developed and developing economies. It is necessary to accelerate industrial upgrading, promote product, management and business model innovation through scientific and technological advancements, and improve the status of Asia-Pacific economies in the global supply chain. Economies with innovation advantages should actively share practices and experiences and proactively transfer technology, while other economies should focus on creating an environment conducive to exploration and progress. China's high-speed rail technology serves as a prime example of successful technological innovation. The Jakarta-Bandung high-speed rail project, a collaboration between China and Indonesia, marks the first overseas high-speed railway project that fully uses Chinese railway systems, technology and industrial components. Known as "Whoosh" for its impressive speed, this railway has, over the past year, not only enhanced the efficiency and comfort of rail travel but also significantly contributed to the local economy, tourism, human resources and people's livelihood.

Amid unprecedented changes and challenges, both developed and developing economies must maintain strategic clarity, stay vigilant against various risks, uphold strategic confidence, and strengthen their governing capacity. China has played a significant role in these areas.

In terms of booming economic development, China remains a stable growth engine. As the world's second largest economy, China continues to maintain a high economic growth rate, providing a strong impetus for global economic development. In international trade, China's huge market demand absorbs goods and services from many countries. For example, China's demand for the import of resource products has led to the development of related industries in Australia, New Zealand and other countries. The demand for electronic components has promoted the prosperity of the electronics processing and manufacturing industry in Southeast Asian countries, contributing to stable regional economic growth.

In recent years, China has actively promoted economic restructuring, moving from traditional manufacturing to high-end manufacturing, technological innovation, and green development. Particularly, in terms of green development, China has vigorously developed the renewable energy industry and increased investment in R&D of clean energy technologies, offering a model for other countries to pursue high-quality and sustainable development.

In terms of promoting trade and investment, China has been actively supporting trade liberalization and investment facilitation process within the APEC mechanism. At recent APEC and G20 meetings, President Xi put forward a series of initiatives and suggestions to promote trade and investment. For example, by advocating for measures such as simplifying customs procedures and improving the transparency of trade policies, China has promoted reducing barriers to trade and investment and to speed up the flow of goods and capital in the Asia-Pacific region.

China has also been an active participant in the negotiation and implementation of Free Trade Agreements (FTAs) in the Asia-Pacific, such as the Regional Comprehensive Economic Partnership (RCEP). These agreements have further deepened regional economic integration under the APEC framework, with China playing a constructive role in promoting the expansion of trade and investment in the region.

In terms of economic cooperation, China has vigorously promoted infrastructure connectivity globally. In transportation infrastructure, China has actively participated in and supported railway construction projects in Southeast Asian countries, such as the China-Laos Railway, enhancing economic ties and improving the regional transportation network's efficiency, thereby facilitating the movement of people and goods.

China and Asia-Pacific countries have carried out extensive cooperation in the industrial sector. In manufacturing, China and ASEAN countries have achieved complementary and extension of industrial chains through the construction of industrial parks. Chinese enterprises have invested and built factories in ASEAN countries, bringing advanced production techniques and benefiting from local resources, thus boosting industrial competitiveness and fostering coordinated regional development.

China has actively promoted scientific and technological innovation cooperation under the APEC framework, advocating for scientific resources through exchange platforms and joint R&D projects. With a leading edge in the digital economy, China shares its expertise in e-commerce, big data, and AI with other Asia-Pacific countries, driving the digital transformation of traditional industries in the region.

Besides, talent training and exchange have been prioritized. Several international cooperation bases and training centers in China attract researchers from across the world, while China also sends many experts abroad to participate in projects, laying a strong foundation for improved innovation capacity.

In social development, China has rich experience in poverty alleviation, education expansion, and healthcare, which it actively shares with developing countries. Notably, China's targeted poverty alleviation strategy has lifted millions out of poverty, offering a model for less developed countries and contributing to improved living standards throughout the region.

In disaster response, China has consistently provided humanitarian and development assistance to nations hit by natural calamities. Following typhoons, earthquakes, and other disasters, China has quickly offered support in terms of supplies, technology, and personnel, demonstrating its role as a responsible major power and enhancing global stability and well-being.

At this year's BRICS Plus leaders' dialogue, Chinese President Xi proposed countries of the Global South to jointly build a community with a shared future for mankind. As the world experiences changes unseen in a century and the international situation becomes increasingly complex, it is even more important and necessary for countries of the Asia-Pacific region and related regions to adhere to solidarity and cooperation, to work side by side on the road to revitalization, and to be at the forefront of promoting the building of a community with a shared future for all.

The author Gao Lei is an associate professor at the Center for Xi Jinping's Thoughts on Opening-up, Research Institute of Globalization and China's Modernization, University of International Business and Economics. The author Xia Lu is a research fellow at the Chongyang Institute for Financial Studies, National Academy for Development and Strategy as well as the Academy of Xi Jinping Thoughts on Socialism with Chinese Characteristics for a New Era, Renmin University of China.

Source: CGTN