Chen wenling: Changes in International Economic Order and Global Governance Provide New Opportunities for China

At the “Annual Meeting of China Economic Trend in 2020” held on 12 January, hosted by the Economic Daily, Chen Wenling, chief economist of the China Center for International Economic Exchanges, delivered a keynote speech on “China’s Opportunities in a Changing World”.

Chen Wenling said that the Central Economic Working Conference pointed out that the current world economic growth continued to slow down and adjust itself after the international financial crisis. Also, it has become more turbulent and risky. Facing the unprecedented changes, we need to make early preparation and seize the opportunities brought by changes in the international economic order and global governance system.

Specifically speaking, there have been four major changes in the global economy and governance.

The first change is the “North-South change.” The power shifting between developed and developing countries and among emerging economies is the most significant change in the world economic structure. This will undoubtedly change the discourse power of different countries. Relevant data shows that China’s contribution to global economic growth reached 39% in 2019, implying that China plays an important role in changing the world economic structure.

The second change is the “East-West change.” On the one hand, the focus of the world economy is shifting from the west to the Asia-Pacific region, especially Asia, which has become the most active region. The changes in various indicators such as the proportion of energy consumption, manufacturing, market size and trade indicate that the trade center and energy trading center are shifting to the east. On the other hand, the discourse power is also changing between the East and the West. For example, the proposals of “Community with a shared future for mankind” and “Belt and Road” made by China have been well responded. The common demands, interests and vision have enabled us to make great progress in the “Belt and Road” initiative.

The third change is the change between old and new economic patterns, business models and development momentum. At present, the fourth global scientific and technological revolution, the industrial revolution, the economic globalization and the fifth industrial transfer have become intertwined and occurred simultaneously. As a result, more complex economic ties and inter-state relations have been formed, but these changes have also provided opportunities for China to catch up with other countries and surpass them.

The fourth change is the change in global governance. China has always advocated multilateralism, trade facilitation and liberalization. In the new round of technological and scientific revolution, it will not work alone but to cooperate with other countries. China chooses to maintain multilateral rules and order, and strive to improve multilateral mechanisms.

The last change is the change in mentality. In the past, some western countries played a leading role in the global governance system. Today, a few of the big powers

place their interests above global interests, violate economic and trade laws but the values promoted by hegemonism will no longer be accepted universally.