Opportunities, Challenges, and Strategic Responses to China’s Participation in Global Economic Governance Amid Changes of the Century 

Opportunities, Challenges, and Strategic Responses to China’s Participation in Global Economic Governance Amid Changes of the Century 

Ma Huxing

School of Politics and Public Administration, Tianjin Normal University

DOI: https://dx.doi.org/10.47772/IJRISS.2024.8100073

Received: 24 September 2024; Accepted: 07 October 2024; Published: 04 November 2024

ABSTRACT

The significant global changes of the past century have presented both opportunities and challenges for China’s participation in global economic governance. Properly understanding these opportunities and challenges is crucial for China to improve its engagement in global economic governance. Regarding opportunities, the rapid growth of China’s economy has enhanced its voice in global economic governance. However, the complex and variable international order has presented China with unprecedented challenges in its participation. Western countries perceive China’s rise as a threat and have implemented various competitive and containment strategies, limiting the effectiveness of China’s support platforms for participating in global economic governance and increasing uncertainties. In response, China will strive to improve its relations with Western countries, deepen mutual trust and interest integration with neighboring and many developing countries, and build new types of international relationships. It will fully leverage the roles of the G20, BRICS, and cooperation mechanisms with Middle Eastern and North African countries, continuously advance Belt and Road Initiative-related topics, enhance China’s leadership in these issues, and make a greater contribution to China’s future participation in global economic governance. 

Keywords: Significant Changes; Global Economic Governance; Opportunities and Challenges; New International Relations

INTRODUCTION

In June 2018, the Chinese Foreign Affairs Work Conference was held in Beijing, where General Secretary Xi Jinping pointed out: “Currently, our country is in the best period of development since modern times, and the world is undergoing a major change unprecedented in a century. The intertwining and interaction of these two scenarios resonate with each other.” Since the concept of a “major change unprecedented in a century” was put forward, there has been active and enthusiastic discussion about this issue within the Chinese academic community. Most scholars understand the connotations of this major change by its characteristics—they believe that it refers to the “rise of the East and decline of the West” in the global political and economic landscape, the “ascent of the South and descent of the North” in the power balance among major countries, the accelerated development of new scientific and technological revolutions, and the destruction of the existing international order by Western countries. In recent years, with the development of China’s economy, China has become a major global economic power. In 2010, China’s GDP surpassed Japan to become the world’s second-largest economy and in 2013, it became the largest exporting nation, playing an increasingly significant role in the international governance system, while also facing greater opportunities and challenges. 

Amid this major change unprecedented in a century, the changes in the world, the era, and history are unfolding in an unprecedented manner. Human society is facing challenges like never before, and the world once again stands at a historical crossroads. The direction it takes depends on the choices of the people of all countries. During this new historical period, the 20th National Congress of the Communist Party of China was grandly convened in Beijing on October 16, 2022. General Secretary Xi Jinping pointed out in his report to the Congress: “Faced with the major changes of the century, China’s choice is to promote world peace and development, and to push forward the building of a community with a shared future for mankind. China always adheres to the diplomatic policy of maintaining world peace and promoting common development, is committed to promoting the building of a community with a shared future for mankind, continues to provide new opportunities for the world with its new developments, promotes the building of an open world economy to push regional and world economic development, makes new contributions to global development with its new developments, and promotes the building of a better world.” General Secretary Xi Jinping also emphasized: “The major changes of the century are accelerating, a new round of scientific and technological revolution and industrial transformation is deeply developing, the balance of international power is adjusting, and China’s development faces new strategic opportunities and challenges. Meanwhile, the impact of the century’s pandemic is profound, anti-globalization sentiment is rising, unilateralism and protectionism are significantly increasing, the world economy is struggling to recover, local conflicts and turmoil occur frequently, global issues are intensifying, and the world is entering a new period of turmoil and change. In this historic opportunity period, we should promote a high level of openness to the outside world, rely on the advantages of our super-large-scale market, enhance the linkage effect of domestic and international markets, create a top-class business environment, and promote the high-quality development of the Belt and Road Initiative. We should deeply participate in global industrial division and cooperation, maintain a diverse and stable international economic pattern and economic and trade relations.” The report again emphasizes: “China insists on the basic national policy of opening up, firmly pursues a mutually beneficial and win-win strategy of opening up, adheres to the correct direction of economic globalization, promotes the liberalization and facilitation of trade and investment, advances bilateral, regional, and multilateral cooperation, promotes the coordination of international macroeconomic policies, jointly creates an international environment conducive to development, actively participates in the reform and construction of the global governance system, practices the concept of global governance based on joint building and sharing, and pushes global governance towards a more just and reasonable direction.” The report of the 20th National Congress of the Communist Party of China has set out the specific development paths and strategic objectives for China’s participation in global economic governance, showing the direction and route for China’s participation in global economic governance. In this new historical period, China needs to fully play its role and global influence, actively respond to the opportunities and challenges under the century’s major changes, continually contribute wisdom to improve global governance, and outline a clearer practical path for building a world of lasting peace and common prosperity. 

The major changes of the century bring opportunities and challenges for China’s participation in global economic governance. Correctly recognizing these opportunities and challenges is of great significance for China to better participate in global economic governance. In terms of opportunities, the strengthened economic power of China has increased its discourse power in global economic governance. Meanwhile, China also faces many challenges in its participation in global economic governance. Leading Western countries, headed by the United States, view China’s peaceful rise as a threat and challenge and have implemented various competitive and containment strategies against China. This has also limited the supportive platform role of China in participating and leading global economic governance, increasing uncertainty. To this end, China will strive to improve relations with Western countries, deepen friendly trust and interest integration with neighboring and many developing countries, and build a new type of international relations. It will fully play the role of cooperation mechanisms such as the G20, BRICS, the Shanghai Cooperation Organization, APEC, etc., promote the high-quality development of Belt and Road Initiative-related topics, enhance China’s leading ability on international issues, and create an excellent platform and solid foundation for China’s future participation in global economic governance. This will then reflect the responsibility of a major country and enhance China’s international influence and appeal. 

This article starts from the connotations of the “major change unprecedented in a century” proposed by President Xi Jinping, expounds on the difficulties and problems faced by world economic governance under the major change, and further demonstrates the opportunities and challenges faced by China in participating in global economic governance under the major change. By deeply understanding and discussing opportunities and challenges, the article seeks innovation and breakthroughs from the related topics of many scholars and seeks the strategic measures China should adopt in the future development path of global governance.  

THE ESSENCE OF THE MAJOR CHANGE UNPRECEDENTED IN A CENTURY 

What exactly constitutes a major change unprecedented in a century? Its core emphasis is on the unprecedented massive changes in the world over the last century, manifesting in various fields: shifts in the global economic center of gravity, political landscape changes, and transformations in development paradigms, technology, and industry. Globalization and new technological revolutions are profoundly altering the foundation and structure of past international relations and order. Therefore, to understand this major change, one must not only possess historical insight but also a forward-looking vision, observing trends with a new “world view” and driving future developments with new concepts. 

(1) Shifts in the Global Economic Structure 

Since modern times, the global economic center of gravity has been on both shores of the North Atlantic, with Western European countries and North America being vital pillars of the global economy. After World War I, the United States replaced the United Kingdom as the world financial center. Following World War II, the U.S. established its dominance in the world economy. Japan’s economic takeoff in the 1960s, although it increased East Asia’s share in the world economic map, its political “westernization” and the strong outward orientation of its development model made it a part of the Western economy, solidifying the economic centrality of the North Atlantic. However, as globalization continues to deepen, the global economic structure is shifting, with developing countries becoming increasingly powerful. Currently, developing countries account for 85% of the global population, their economic growth rate has long exceeded that of developed countries, and in terms of purchasing power parity, their economic total has surpassed that of the developed world, with emerging economies playing an increasingly prominent role in the new round of technological and industrial revolutions. It has become difficult for any country to sanction or restrict the development of another with overwhelming superiority. 

In the 21st century, with the collective rise of developing major countries from different regions such as China, Russia, India, Brazil, and South Africa, coupled with the severe blow dealt to Europe and America by the 2008 financial crisis, the world economic center started shifting from West to East, from North to South. According to data released at the 2017 BRICS leaders’ meeting in Xiamen, the BRICS economies accounted for 23% of the global economy in 2017, almost double the 12% from ten years prior, with their contribution to world economic growth exceeding 50%. By 2020, the economic total of the BRICS countries increased significantly. The economic scale of the BRICS countries in 2020 was: China’s $14.72 trillion, India’s $2.66 trillion, Russia’s $1.48 trillion, Brazil’s $1.44 trillion, and South Africa’s $335 billion, totaling $20.63 trillion, with China’s share reaching 71.3%, a 20 percentage point increase. At that time, the global economy was approximately $84.68 trillion, with the BRICS countries’ share being 24.36%, while the United States and European Union’s economic totals were $20.89 trillion and $15.29 trillion, respectively, accounting for 24.67% and 18.06% of the world respectively. The BRICS countries’ share of the economy had surpassed that of the European Union and was close to that of the United States. The data show that the BRICS countries lead in economic development speed and capacity, with their contributions being foremost. 

As a key country in global development, China has made rapid economic progress over the past 40 years. As the world’s second-largest economy, its economic influence and driving role are significant, making it a key force in changing the world’s economic structure. At the 2021 Boao Forum for Asia, former Deputy Minister of Commerce Long Yongtu said, “For the past century or two, the global economy and trade center has always been in Europe and North America. The signing of the RCEP symbolically signifies that the global economic center has shifted to Asia and the Pacific region.” These development trends and changes have attracted more cooperation partners, improved the surrounding environment, and led to increased attention to emerging economies. On the other hand, they also bring more complexity and uncertainty to our country’s development environment. 

(2) Changes in the Global Political Landscape 

Following the First World War, the Western colonial system began to crumble. Through persistent efforts and struggles, a vast number of Asian, African, and Latin American nations broke free from the exploitation and enslavement of colonial and semi-colonial status, achieving political and economic independence and sovereign development. However, due to the inability to formulate corresponding development philosophies and paths, and the considerable disparities in modes of development, coupled with unstable political and economic structures, the economically disadvantaged status of these nations remained largely unchanged. Western countries, leveraging their advanced economic, technological, cultural, and military strengths accumulated since the Industrial Revolution, have maintained a dominant position in global political and economic governance, possessing a greater degree of discourse power. 

After the end of the Cold War in 1991, the bipolar world established post-World War II disintegrated, leading to the emergence of a “one-superpower, many-great-powers” structure. By 2008, some academic circles proposed the concept of a “two-superpowers, many-great-powers” global structure. Intense competition ensued between the “one superpower” or “two superpowers” and the “many great powers,” with one camp aiming to create a unipolar world and the others advocating for multipolarity. Yet, whether it was the “bipolar world” or the “one-superpower, many-great-powers” configuration, it was undeniable that the Western world was steering the global landscape at the time. However, with over four decades of continuous changes in global conditions, globalization and diversification have taken root in the collective conscience, and the push for multipolarity has progressed, making the unipolar “dream” increasingly remote. Many entities such as China, Russia, the European Union, the Association of Southeast Asian Nations (ASEAN), the League of Arab States (LAS), and the Gulf Cooperation Council (GCC) have become significant multipolar forces. Among these, the status of developing powerhouses like China and India continues to rise, while the positions of Europe and Japan, as significant Western forces, have declined. Since ascending to the world’s second-largest economy in 2010, China’s share of the global economy has surged from 1.8% forty years ago to 18% in 2021, with its contribution to global economic growth reaching 35%. China, increasingly approaching the center stage of the world, has indeed become a crucial force in driving the global trend towards multipolarity. 

The global political landscape and trade order are undergoing a shift, with discourse power tilting towards developing nations. Changes in the economic landscape inevitably bring about alterations in the political landscape and trade. The rise of the Group of Twenty (G20) signifies that emerging economies have become a force that the West cannot overlook; the BRICS group’s transformation from a concept to reality reflects the will and confidence of developing major countries to strengthen solidarity and collaboration; the signing of the Regional Comprehensive Economic Partnership (RCEP) heralds the birth of the world’s largest free trade area, primarily composed of developing countries. Propelled by a movement away from Western-centric paradigms, the stature of developing major countries on the world political stage has risen, and the trend towards a more balanced multipolarity has developed. The International Monetary Fund (IMF) and the World Bank, important carriers of the world economic order, have both increased the share and voting rights of developing countries. 

The transformation of the global economic structure has effectively propelled the evolution of the world political landscape, also intensifying strategic competition and power plays among major powers. These significant factors are set to profoundly alter the future international economic landscape and signal the advent of a major readjustment period in the international framework, challenging the existing international political order that has been underpinned by major-power coordination. 

(3) Changes in Industrial Structure and Technology 

Over the past five centuries, Western countries have possessed an overwhelming technological edge, specifically manifesting in the fields of science and technology since the British Industrial Revolution. All powerful nations in the world have been those that seek legitimacy and innovation, translating their cultural and technological advantages into industrial and military superiority. Previous technological and industrial revolutions have been led by countries on both sides of the Atlantic, such as the United Kingdom and the United States. The signs of a new round of technological revolution and industrial transformation, evident in this century, showcase that while the innovation-strong United States continues to play a leading role, emerging nations like China and India are also drawing attention, striving to join the front ranks of technological and industrial transformation. 

The driving forces behind economic globalization are shifting, with developing countries playing an increasingly significant role. Although the current global situation is not in major turmoil, there are ongoing local conflicts, geopolitical tensions, the rise of American unilateralism, China-US trade frictions, and the Brexit agenda, among others. Some Western countries, once key drivers of economic globalization, have lost their momentum and are even experiencing an anti-globalization wave, unseen for centuries, bringing uncertainty to globalization. 

Currently, a new round of technological and industrial revolutions led by the metaverse, the internet, artificial intelligence, big data, and quantum technology is burgeoning. This will inevitably revolutionize the way humans produce and live, thus “profoundly altering the comparative and competitive advantages of different countries as seen before.” Over the past few decades, science and technology have transformed the majority of industries globally, widely referred to as the “Fourth Industrial Revolution.” For example, artificial intelligence has become the core of this new wave of technological revolution. In terms of the number of patents globally, China, the United States, and Japan are in the top three, with China surpassing the United States and Japan to become the country with the most patent applications in the field of artificial intelligence. As of November 2021, China holds the second-highest number of valid patents globally, second only to the United States. In the age of artificial intelligence, data is king; “big data” has become the core of the new generation of technological revolutions. “Blockchain,” “digital assets,” “the Internet of Things,” and similar technologies provide better connectivity and interaction for rapidly developing countries around the world. Electronics and information technology, dominating the new round of technological revolution and industrial transformation, are reshaping the world and accelerating the process of globalization. In recent decades, with the surge in computer hardware performance and continuous iteration and optimization of software algorithms, the computational and transmission speeds of various information and communication technology devices have increased geometrically, leading to epoch-making achievements in the electronic information industry. The new round of technological revolution and industrial transformation is changing the world on multiple levels, with electronics and information technology playing a pivotal role. They have simplified the process by which people understand and transform the world, breaking down the geographical barriers between people and between people and objects, and greatly accelerating the globalization process. 

CHINA’S OPPORTUNITIES TO PARTICIPATE IN GLOBAL ECONOMIC GOVERNANCE 

China’s active participation in global governance represents a strategic choice for its further integration into the world. Amidst a once-in-a-century shift in the global landscape, the international political and economic order is complex and intricate, offering China unprecedented opportunities to deeply engage in global economic governance. How to seize these opportunities to ascend within the international political and economic order is a strategic interest in China’s future development. 

(1) Convergence of Western and Chinese Economic Governance Models 

Following World War II, Western powers led the establishment of the Bretton Woods system and conducted global economic governance within its framework. The system’s fundamental characteristic was coordination and joint governance among the hegemonic states, which gradually evolved into unilateral governance centered around the United States. This trajectory eventually led to a Western-dominated model with the United States at the forefront. Developed Western nations have held a dominant position in the formulation of international economic and trade rules, epitomizing the Western economic governance model. Since 1979, China, in its process of opening, has shifted from initially accepting international economic and trade rules to actively aligning with them. China’s accession to the WTO in 2001 marked a new stage of opening its industries to the outside world. In 2013, the proposal of the “Belt and Road” initiative aimed to create a new model of economic global governance and a new type of community, paving the way for novel international economic and trade rules. In 2018, China promoted comprehensive external opening-up to adapt to new circumstances and characteristics, moving from opening up based on the flow of goods and factors to an opening up inclusive of rules and institutional arrangements. In 2020, it further proposed “gradually forming a new development pattern where domestic circulation plays a dominant role and domestic and international circulations reinforce each other.” The introduction of institutional opening-up and the dual circulation development pattern provides a new possibility for China to participate in global economic governance through institutional opening-up. The international and domestic economic governance models have begun to gradually converge. 

(2) The Enhancement of China’s Economic Strength Has Laid the Foundation for Its Participation in Global Economic Governance 

With forty years of rapid economic growth following the reform and opening-up policy, China’s economic position in the world has been continuously elevated. In 2010, China’s economy surpassed Japan’s, becoming the second-largest global economy after the United States, with an increasing gap between it and other economies. In terms of investment and trade, China became the world’s largest trading nation in 2013, and the largest destination for investment in 2014. In the financial sector, the Chinese renminbi became the third most used currency for trade financing in 2015. Since the outbreak of the COVID-19 pandemic in 2020, China was among the first to control the epidemic and became the earliest economy to recover. Despite the global economic downturn caused by COVID-19, China has maintained economic growth, albeit at a slower pace. In 2021, the top three countries by GDP remained the United States, China, and Japan. In 2022, facing challenges, China’s economy has stabilized and rebounded, with a year-on-year GDP growth of 2.5% in the first half of the year, reaching a total economic volume of 56 trillion yuan. As China’s economic strength continues to increase, it not only augments its bargaining power in foreign economic and trade negotiations but also lays a solid foundation for its participation and leadership in global economic governance. 

(3) New Platforms for Global Economic Governance Provide Fresh Opportunities for the Implementation of the Chinese Approach 

In September 2009, at the G20 summit in Pittsburgh, leaders reached a consensus to establish the G20 as the premier forum for international economic cooperation, supplanting the G8. This development represented a significant advancement in the participation of emerging economies in global economic governance and provided new platforms for countries like China to engage in global governance. The establishment of the G20 summit mechanism also reflects the political and economic shift from a unipolar world dominated by a single superpower to a multipolar one with several strong players. It signifies the end of an era in which developed nations unilaterally influenced major issues in global economic governance. The world has entered an era of diversified governance entities, marking a transition from a Western-dominated governance structure to a collaborative governance stage between developed and developing countries. 

Since 2013, Chinese President Xi Jinping has attended successive G20 summits, advocating a global economic governance concept characterized by equality, openness, cooperation, and shared benefits. He has called for a development path that is fair, open, comprehensive, and innovative, providing important conceptual guidance for addressing the major practical challenges of global development and improving global economic governance. At the G20 summit in 2019, President Xi stated, “The G20 bears the responsibility to steer the course of the world economy and global governance at critical junctures, to boost market confidence, and to bring hope to the people. We must respect objective laws, leverage the role of the market, and meet the needs of productivity development; we must grasp the general trend of development, embrace development opportunities with greater openness, seek mutually beneficial cooperation for better partnership, and guide economic globalization in the right direction.” 

In 2020, President Xi reiterated, “The spirit of solidarity and win-win cooperation is the most precious asset of the G20 and the inevitable choice for countries to collectively address global challenges. Faced with new situations and challenges, the G20 should demonstrate strategic vision and uphold the spirit of partnership to drive economic globalization towards an open, inclusive, universally beneficial, balanced, and win-win direction.” 

Among emerging nations, the cooperation mechanism of the BRICS countries, initiated by China, has provided a new platform for the implementation of the Chinese approach. Since the establishment of the BRICS leaders’ meeting mechanism, under China’s participation and leadership, the cooperation areas of the BRICS countries have continuously expanded and deepened, achieving many notable accomplishments. For instance, the BRICS countries have announced the establishment of the New Development Bank with an authorized capital of 100 billion U.S. dollars and an initial reserve fund of 100 billion U.S. dollars, supplementing the existing international financial governance mechanisms. 

In summary, emerging nations and economic organizations such as the G20 and BRICS countries are intensifying exchanges and cooperation between states and regions, forging a new global governance paradigm. 

CHALLENGES IN CHINA’S PARTICIPATION IN GLOBAL ECONOMIC GOVERNANCE 

As the world undergoes the most significant changes seen in a century, the acceleration of these transformations has highlighted global geopolitical competition and intensified uneven development. The spread of economic nationalism and a surge in anti-globalization sentiment are rampant. Concurrently, a new wave of technological revolution and industrial transformation is profoundly underway, leading to a deep reshaping of international power dynamics. These factors contribute to an unprecedented asymmetry between global economic governance and the world economic situation, accompanied by numerous uncertainties. The complexity of international affairs has given rise to various factors that impact China’s role in global economic governance. The main challenges can be summarized as follows: 

(1) Western Countries Perceive China’s Rise as a Threat and Challenge 

With the global shift characterized by the rise of the East and the decline of the West, the United States has experienced a diminution in its dominance over international affairs, while China has gained greater creative influence and operational capacity in global development. China is not only driving the construction and reform of the global economic governance system but is also willing to play an intermediary role. With the replacement of the G8 by the G20 and the establishment of the BRICS meeting mechanism, as well as China’s introduction of the Belt and Road Initiative, Western countries have aggressively propagated the “China threat theory” and allegations of debt crises among countries along the Belt and Road, contributing to a proliferation of such narratives. The anxiety of being supplanted or threatened surged in the United States and the wider Western community, leading them to view China as a challenger. 

In 2019, the United States explicitly stated that “China is the primary ‘rival’ challenging American interests, economy, and values,” and initiated a trade war with China. In February 2020, the U.S. Secretary of Defense identified China and its growing military power as a source of international security concern for the United States. Today, the “China threat theory” takes on a “flying geese” formation, led by the United States, followed by Australia, Japan, and India, with the European Union selectively intervening and similar viewpoints existing in other countries. 

The Biden administration is committed to rallying allies to form anti-China democratic technology alliances and global supply chain value alliances. These alliances aim not only to economically isolate and suppress China but also to limit China’s ability to exploit its advantages in the formulation of rules and standards in relevant fields, squeezing China’s discourse power in rulemaking. The United States has also proposed competitive, alternative plans to China’s Belt and Road Initiative. For instance, the Trump administration launched the Blue Dot Network initiative with Japan and Australia, the Biden administration introduced the Build Back Better World initiative and launched the Indo-Pacific Economic Framework (IPEF), the European Union proposed the Global Gateway and the United Kingdom put forward the Clean Green Initiative, among others, all of which pose competitive challenges to the Belt and Road Initiative. The Quadrilateral Security Dialogue (Quad) formed by the United States, Japan, India, and Australia, and the AUKUS group formed by the United States, the United Kingdom, and Australia, seek to further suppress China in the military and security fields. Under various competitive containment strategic frameworks, led by the United States, Western countries are trying to take a series of related measures in political, economic, technological, and military domains to suppress China’s development. This not only deteriorates the environment for China’s participation in global economic governance to some extent but also adds obstacles to China playing a larger role in global economic governance. 

(2) Limited Support Platform Roles for China in Participating and Leading Global Economic Governance 

The global economic governance mechanism established in 1945, known as the Bretton Woods system, has played an important role through its three main pillars: the International Monetary Fund (IMF), which has maintained relative exchange rate stability; the International Bank for Reconstruction and Development (IBRD), which has promoted post-World War II economic recovery; and the General Agreement on Tariffs and Trade (GATT), which has been committed to reducing tariffs and non-tariff barriers, fostering the development of international trade. However, they are no longer fully reflective of the complex changes in the current global economy. From 1945 to 2020, there have been substantial changes in the global economic structure, with emerging economies now accounting for 50% of the global GDP and contributing over 60% of global economic growth annually in recent decades, becoming the primary driving force of the global economy. 

The existing global economic governance mechanisms cannot effectively reflect and respond to the current level of economic development across various regions: developing countries, including emerging economies, are still unable to effectively participate in global economic governance decision-making processes; there is an overemphasis on economic liberalization, overlooking specific economic and social conditions of individual countries; the decision-making systems of multilateral organizations are also troubled by a democratic deficit, failing to truly consider the interests of developing countries. Since the outbreak of COVID-19, the shortcomings of the global economic governance mechanisms have become evident; they are outdated and unable to effectively provide global public goods, nor can they ensure the prevention or mitigation of the serious impact of the pandemic on global public health security. 

Within the existing global economic governance framework, China plays a leading role mainly in the BRICS cooperation mechanism and the Asian Infrastructure Investment Bank (AIIB). Looking at the mechanisms themselves, some factors constrain the full effectiveness of the BRICS in global economic governance. Since its establishment, the BRICS cooperation mechanism has expanded its communication channels to cover four major areas: political, economic, security, and cultural. However, due to the global economic downturn and the China-US trade war, there exists a mix of cooperation and competition among BRICS members, affecting the synergy and cohesion of the group, and leading to the slow progress of the mechanism. The primary positioning of the BRICS is as a policy communication platform; hence, the consensus reached at the five-nation meetings lacks binding force. 

The AIIB is still in its initial stages and has limited influence on the existing international monetary and financial systems; its role in supporting China’s participation in global economic governance is yet to be enhanced. Additionally, China’s participation and promotion of global economic governance are also achieved through involvement in various regional cooperation. First is the participation and active promotion of the negotiation process for the Regional Comprehensive Economic Partnership (RCEP), initiated by ASEAN, which took eight years to formally sign due to various reasons. Second is the proposal to jointly build the Belt and Road Initiative, aiming to enhance comprehensive cooperation among the countries along the route, align their economic development strategies, achieve mutual benefits, and promote joint development. Third is the active advancement of bilateral free trade agreements or participation in international conferences and forums for global economic governance, such as the China-Arab States Cooperation Forum and the Forum on China-Africa Cooperation, which have achieved significant cooperative outcomes over the years. 

(3) Increasing Uncertainties in China’s Participation in Global Economic Governance 

Firstly, due to a variety of reasons, the stagnation of the Doha negotiations within the World Trade Organization (WTO) has led to a standstill in multilateral mechanisms, resulting in a gradual decline in its importance for global economic governance. Additionally, the BRICS cooperation mechanism has started to face new challenges. Since 2019, the economic growth of BRICS countries has generally slowed, evident in widespread contractions in foreign trade, increased employment rate pressures, and rising national debt ratios. Long-standing cooperative and competitive dynamics within the BRICS, along with diverse stances and identities held by member states, have added to the struggle for more say within the mechanism while guarding against dominance by others. These factors have introduced numerous disadvantages to the synergy and cohesion of the BRICS cooperation, preventing significant breakthroughs in cooperation among the major powers within the mechanism over the years. 

Secondly, a minority of developed countries still hold the reins of leadership in mechanisms for participating in global economic governance. The World Bank and the International Monetary Fund (IMF) are effectively controlled by the United States and the European Union. The United States, with 15.87% of voting rights, is the largest shareholder at the World Bank, followed by Japan with 6.84%, and China with 5.75%. Since its inception, the Managing Director of the IMF has always been a citizen of an EU country; as of October 2019, all 12 Managing Directors have come from EU countries. These established realities have also reduced the coordination and enthusiasm of developing and emerging countries within the global economic governance mechanisms, impeding the rapid progress of global economic governance. The 2008 financial crisis provided a rare opportunity for countries like China to participate in global economic governance. In the early stages of the crisis, developed countries sought support from emerging market countries through certain reforms and concessions. 

Currently, the divergence in macroeconomic policymaking among economies, particularly as major Western powers unilaterally advance nationalist protectionist policies, has increased the difficulty of policy coordination and collective action in global economic governance. Long-term Western efforts led by the United States to preserve their vested interests and to seek control over the formulation and administration of international rules have left many developing and emerging countries in a passive position regarding rulemaking and power exercise. 

Lastly, although China has not been deeply involved in global economic governance for long and its governance experience and capacity appear somewhat insufficient, its rapidly growing comprehensive national strength and its creativity and contributions to the global economy are widely recognized. This has aroused doubts and dissatisfaction among the established Western powers led by the United States, prompting these countries, along with some of China’s neighboring countries and regions, to deliberately create public opinion, actively propagating the so-called “China threat theory,” the “Thucydides Trap,” and the “Kindle Berger Trap.” Specifically, the U.S. government has defined China as a “strategic competitor,” fearing that China’s rise might bring adverse consequences to the world, worried about the potential harm to its interests, the international order it leads, and the various rights it enjoys, ultimately undermining its hegemonic foundation. This doubtlessly undermines the development principles of economic globalization and diversity and poses obstacles to nations actively participating in global economic governance. 

However, as global economic governance finds itself in a dilemma and countries worldwide seek reform to address the crisis, the sudden outbreak of COVID-19 has had a profound and enduring impact, spreading globally for over two years since its emergence at the end of 2019. The pandemic’s rapid spread led countries to implement varying degrees of lockdowns, flight and transportation suspensions, and other related epidemic prevention measures. During the pandemic, countries’ isolation measures dealt a severe blow to the operation of the global industrial chain based on intermediate goods trade. Lockdowns forced businesses to halt production, flight suspensions prevented products from being shipped out, and the flow of labor and technology was obstructed, affecting both upstream and downstream enterprises. The operation of the global industrial chain suffered a “hard decoupling” from both supply and demand ends, and the international division of labor system experienced an abrupt halt. The global economy faced its most severe contraction since the Great Depression of the 1930s. The pandemic has exacerbated income inequality and uneven development, posing serious fiscal challenges for many developing countries. The sudden disruption of global supply chains caused by the outbreak has sparked concerns about national economies. The sharp contraction of trade and investment demand, and the prevalence of trade and investment nationalism, have significantly impacted global employment, with domestic order and geopolitics in crisis. 

While the outbreak of the pandemic has dealt a severe blow to the global economy and shaken multiple facets of global economic governance, reversing the forces of economic globalization, it has also created new opportunities for strengthening global cooperation. Different regions worldwide have cooperated and made efforts to manage the pandemic to various extents, leading countries to realize the importance of strengthening public health systems, enhancing resilience to economic shocks, improving the global social protection system, pursuing green economic transformation, and addressing climate change. However, these goals can only be achieved through intensified international cooperation. Therefore, considering the above uncertainties, the developing countries led by China and the newly emerging countries of the world face significant challenges and opportunities. 

CHINA’S POLICY PROPOSALS FOR PARTICIPATING IN GLOBAL ECONOMIC GOVERNANCE 

Within the context of the “profound changes unseen in a century” and the new environment of “re-globalization,” there is considerable space for China to drive reforms in the global economic governance system and to build its capabilities for participation and governance. Considering the opportunities and challenges facing China, the following strategies should be considered to enhance China’s position and role in global economic governance: 

(1) Establishing a New Type of International Relations with Western Countries, especially with the United States 

The current Sino-U.S. relationship has become the most significant factor affecting the global political and economic landscape. In recent years, the “Sino-U.S. trade war” and the blockades by the U.S. and other Western countries have been pivotal. Cooperation between China and the U.S. benefits both, while confrontation harms both. Despite the relationship’s current challenges, there remain many areas for potential collaboration and shared interests. President Xi Jinping has stated that the Sino-U.S. relationship is the ballast stone and booster of the world economy. Both parties should objectively view each other’s developmental stages, respect each other’s developmental interests, see each other’s opportunities and challenges as their own, find more points of converging interests, and hope to continue deepening communication through mechanisms such as the China-U.S. Strategic and Economic Dialogue. Strengthening macroeconomic policy coordination and cooperation within multilateral frameworks like the G20 and APEC can drive the reform of global economic governance. This approach expresses a scientific understanding of the significance of Sino-U.S. relations. In the face of U.S. intentions to decouple from China, China should take the initiative to engage in dialogue and consultation with the U.S. in key areas and strengthen cooperation. On November 16, 2021, Chinese President Xi Jinping held a video conference with U.S. President Biden, where Xi stressed: “China and the U.S. should show their responsibility as major countries, lead international society in cooperative responses to prominent challenges, and focus on pushing cooperation in four priority areas.” Therefore, building a new type of Sino-U.S. relationship is a necessary foundation for both countries to participate in the global development trend and provides a strong guarantee for better participation in global governance. 

(2) Maximizing the Role of G20 and BRICS Cooperation Mechanisms 

In the field of global economic governance, the Group of Twenty (G20) and the BRICS cooperation mechanism are critical platforms for major countries to collaborate. Within the G20 governance framework, neither emerging nor developed economies can operate in isolation. Even the G7, a Western-dominated governance platform, cannot completely exclude emerging economies like China. China should continue to strengthen communication with BRICS countries through various BRICS meetings and international forums. Only by resonating with other BRICS nations and the broader developing world can China play its full role. By building consensus through the BRICS cooperation mechanism and voicing common concerns in the BRICS Summit declarations, China can draw global attention, promote worldwide recognition of shared views, and leverage the collective strength of BRICS to participate in and influence global governance. However, to date, these two mechanisms lack organizational charters and secretariats, and the themes of their meetings are set by the host, resulting in a lack of continuity in leadership agendas. As China relies on these platforms to participate in and lead global economic governance, it should not insist on consensus from all parties but instead focus on addressing common problems and maximizing cooperation. 

(3) Accelerating the Advancement of Belt and Road-Related Issues to Enhance China’s Participatory and Leadership Capacity 

The scope of global economic governance encompasses a wide range of topics and new areas are continually emerging. Currently, the global economy faces challenges such as insufficient growth momentum, imbalance in development, and unequal opportunities, making reform of the global economic governance system increasingly urgent. Guided by the concept of a “community with a shared future for humanity,” China is continually developing and perfecting its global governance perspective. By providing new public goods to the world and promoting the construction of the Belt and Road Initiative (BRI), China is comprehensively advancing the achievement of the United Nations 2030 Sustainable Development Goals. President Xi Jinping stated in the report to the 20th National Congress of the Communist Party of China: “We must accelerate the establishment of a new development pattern, insist on promoting high-quality development, maintain a high level of openness to the outside world, and accelerate the creation of a new development pattern in which domestic big circulation is the main body and domestic and international dual circulations promote each other, to promote high-quality development of the Belt and Road Initiative.” 

As an increasingly significant variable in the global economic governance system, China needs to accurately understand the characteristics and evolution of global economic governance, maintain strategic focus, actively respond to new contexts and changes, adhere to the principles of consultation, contribution, and shared benefits, and drive the global economic governance system towards a more just and reasonable direction. As the largest developing country, China has accumulated extensive economic development experience and needs to accelerate the high-quality development of the BRI, establishing effective regional economic linkage mechanisms. The global significance of the BRI’s goals, philosophy, cooperation models, and implementation methods underpins China’s leading role in development issues, providing support for elevating China’s leadership in these discussions. 

(4) Upholding Sustainable Development Strategies for Peaceful, Stable, and Mutually Beneficial Global Economic Governance 

Following the 2008 global financial crisis, the economic strengths of global economies have shifted significantly. In this dynamic, the power structure that dictates global governance has exhibited new trends, with global economic governance evolving into a complex interaction of developed and developing economies, marked by a blend of competition and collaboration. Developed countries like the United States frequently adjust their economic policies in response to risks, pursuing diverse strategies. Developing countries and some emerging nations have suffered economic setbacks, with overall economic growth slowing or decreasing. This has adversely impacted the prospects for global economic recovery, increased the vulnerability of the world economy to risks, and hindered comprehensive integration in global economic development. It has also brought difficulties to the model of global economic governance. To address such challenges, it is vital to uphold the United Nations’ 2020 high-cooperation, peaceful, stable, and mutually beneficial sustainable development goals (SDGs), also known as global goals, which aim to maintain human development and the well-being of our planet. 

President Xi Jinping reiterated in his report to the 20th National Congress of the Communist Party of China: “China consistently upholds the diplomatic purpose of preserving world peace and promoting common development. We are committed to developing friendly relations with other countries based on the Five Principles of Peaceful Coexistence, to promote a new type of international relations, actively participate in the reform and construction of the global governance system, practice the global governance concept of consultation, contribution, and shared benefits, adhere to win-win cooperation, stick to a green, low-carbon sustainable development strategy, firmly safeguard the international system centered on the United Nations, the international order based on international law, and the international relations norms founded on the purposes and principles of the United Nations Charter, and strive to build a world of common prosperity.” 

It is evident that China’s initiatives, such as the Belt and Road and the concept of a “community with a shared future for mankind,” resonate with the United Nations’ “2030 Sustainable Development Goals.” They can be effectively combined, thereby driving the regions along the Belt and Road and various countries to jointly advance the realization of the 2030 Sustainable Development Goals. This will lead to innovation and transformation in global economic governance mechanisms, enabling China to take a proactive stance. 

Simultaneously, it is crucial to rationally and strategically navigate and address disagreements with the leading nations of the existing global economic governance system, fostering coordination and cooperation among major powers. Especially for China and the U.S., with their deep economic and trade ties, breakthroughs should be sought, and efforts to strengthen cooperation in areas like climate change and public health should continue. Further, strengthening solidarity and creating new dynamics for South-South cooperation, as well as enhancing collective resonance and influence on the global economic governance stage with more developing countries is essential. Additionally, promoting the effectiveness of multilateral mechanisms such as the World Trade Organization and APEC, expanding the influence of cooperative mechanisms like BRICS and the Shanghai Cooperation Organization, and amplifying the representation and voice of emerging market countries and developing nations in global affairs is imperative. 

CONCLUSION

General Secretary Xi Jinping pointed out: “In the face of unprecedented global changes in a century, the world economy is undergoing a deep adjustment period, with overall recovery being difficult and tortuous. There are still many risks in the international financial field, various forms of protectionism are on the rise, countries face numerous difficulties in adjusting economic structures, and the global governance mechanism needs further improvement. The significant global changes bring opportunities and challenges for China’s participation in global economic governance, and correctly understanding these opportunities and challenges is significant for China to better engage in global economic governance. Regarding opportunities, the increased economic strength of China has heightened its say in global economic governance. At the same time, China faces many challenges in participating in and leading global economic governance; Western countries perceive China’s rise as a threat and challenge, and the support platform for China’s leadership in global economic governance has limited influence, with increased uncertainties. To this end, China will strive to construct its relationships with Western countries, especially the United States. It will maximize the role of cooperative mechanisms such as the G20, BRICS, SCO, and APEC, push forward the high-quality development of Belt and Road-related topics, enhance China’s leadership in these issues, and create a robust platform and solid foundation for China’s future participation in global economic governance. This will embody the responsibilities of a major country and enhance China’s international influence and appeal.” 

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