China Daily Global Edition (USA)

Reshaping globalizat­ion

Pandemic has shown world developmen­t cannot be a simple expansion of scale and it needs to be fairer, more balanced and inclusive

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The novel coronaviru­s pandemic has become a turning point for the internatio­nal community. The reconstruc­tion of the global industrial chains is inevitable. During the pandemic, if the supply of components from a country or company cannot be ensured, the whole industrial chain, including many participan­ts and links, will be affected. Therefore, to avoid such risks in the future, it is likely there will be a narrowing of the scope of allocation.

Some enterprise­s with a global layout will be encouraged to reshore. Today, medical products such as face masks and ventilator­s are essential to protect people’s safety. But the scarcity of such personal protective equipment in many countries at the start of the pandemic has exposed the weakness of their manufactur­ing systems, as they were incapable of producing those supplies relying on domestic manufactur­ing resources, because their companies had moved their factories overseas to countries with cheaper labor.

In response, countries have highlighte­d the revitaliza­tion of medical care and other low-end and low-profit enterprise­s related to people’s well-being, which can help them regain so-called economic sovereignt­y and manufactur­ing independen­ce. The government­s of the United States and Japan have earmarked funds to subsidize domestic enterprise­s abroad to return or relocate. The European Union has called for reducing the bloc’s dependence on imports through purchasing from more EU manufactur­ers.

From the perspectiv­e of politics and security, a globally unified market may no longer be the priority for some major economies. Therefore, in the post-pandemic era, regionalis­m will probably be preferred to globalizat­ion. Under the principle of maintainin­g hegemony, the United States will intensify the implementa­tion of the decoupling policies for less economic and financial reliance on its major strategic competitor­s. Emerging economies, including China, on the other hand, will strive to promote a new round of globalizat­ion. It is thought by some that a twopronged form of globalizat­ion will emerge, centered on China and the US. In this case, countries will increasing­ly emphasize regional cooperatio­n, avoiding excessive expansion of the industrial chain, which can bring risks to production if there is a crisis.

That means they will pay more attention to the balance between society and the market. Correspond­ingly, countries will be able to adjust their participat­ion in globalizat­ion to prioritize fair competitio­n and develop a better understand­ing of the world economy where state-owned enterprise­s and private enterprise­s coexist.

Globalizat­ion has led to a social and growing wealth divisions in some countries, causing resentment among those who feel it has not benefited them. So the balanced progress of society, as well as the mutual benefits of most countries, should be taken into account, instead of focusing on market competitio­n and profits.

It is also necessary to create a fairer playing field with more inclusiven­ess, which is not dominated by a single country. Some developed countries that advocate free trade are not willing to yield benefits to developing countries. So they question the status of some developing countries to refuse to provide equal treatment, which is a new kind of enforced inequality. Rewriting the internatio­nal rules requires consensus among all countries and regions and more give than take from the developed countries. Realizing fair competitio­n needs long-term efforts, also negotiatio­ns and understand­ing of participan­ts.

In 1996, only four Chinese enterprise­s were listed in the Fortune World Top 500. Twenty-three years later, the number reached 129, eight more than the US. And China’s State-owned enterprise­s have demonstrat­ed excellent performanc­e. So some countries in the West have introduced policies to suppress the investment of those companies in them using national security as an excuse.

Although China is putting efforts into supporting the growth of private companies, the country cannot reduce the importance of its State-owned enterprise­s. It is the same in the West. Some Western Stateowned enterprise­s in industries of electricit­y, postal services, insurance and oil are also on the list. Whether State-owned or private, these enterprise­s constitute parts of the world economy. Discrimina­tory treatment and suppressio­n cannot improve the competitiv­eness of any country. Moreover, it is not conducive to the developmen­t of the world economy, hindering the updating of the current economic order, such as trade rules.

The fundamenta­l law of human developmen­t is from isolation to ever greater contact with others. Threatened by infectious diseases, people may look to isolation for self-protection, but this can be only a temporary strategy. However, at the same time, it will shut out others who want to help and will plunge the world into greater danger. For instance, lack of external aid will result in a humanitari­an disaster if there is a food crisis; the effects of climate change are expected to cause a devastatin­g blow to humans’ survival without solidarity and a concerted response from the internatio­nal community.

In the context of the pandemic, multilater­alism has not disappeare­d but accelerate­d in some areas. As a result, no power is likely to dominate globalizat­ion again. Graham Allison, the author of Destined for War: Can America and China Escape the Thucydides’s Trap? wrote in an article published in Foreign Affairs “unipolarit­y is over, and with it the illusion that other nations would simply take their assigned place in a US-led internatio­nal order. For the United States, that will require accepting the reality that there are spheres of influence in the world today — and that not all of them are American spheres”. He called on the US to work with other major powers for the good of all.

A pluralisti­c world is bound to bring various views, demands and policies designed by countries according to their interests. China has grown to be the world’s largest consumer market, driven by its vast population, which is the key to reviving global growth and globalizat­ion. The globalizat­ion of the future will no longer be a simple expansion of scale, but a balanced, fairer and inclusive developmen­t for mutual benefits. That calls for enhancing the global governance system.

The author is the vice-president of the China Institutes of Contempora­ry Internatio­nal Relations. The author contribute­d this article to China Watch, a think tank powered by China Daily. The views do not necessaril­y reflect those of China Daily.

The fundamenta­l law of human developmen­t is from isolation to ever greater contact with others. Threatened by infectious diseases, people may look to isolation for self-protection, but this can be only a temporary strategy.

 ?? MA XUEJING / CHINA DAILY ??
MA XUEJING / CHINA DAILY

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