China-EU cooperation needed to safeguard globalisation’s future
- The Bretton Woods system has failed to keep up, so the US, EU, China and other Global South states must find a new multipolar model of peaceful coexistence
- Amid Sino-US competition, China and Europe can keep the world on a multipolar keel by cooperating in four crucial domains
The current international system, comprising the World Bank, International Monetary Fund and World Trade Organization, and led largely by the United States and Europe, was established after World War II to promote globalisation and has seen great success.
China is part of the Global South but some of its regions have reached levels of development comparable to Global North nations. China is in a position to link with the major sectors of a multipolar world and play a leading role in globalisation.
To build a new global governance system, the US, European Union, China and other Global South countries need to agree on a multipolar model of peaceful coexistence. It would behove China, the US and EU to establish a trilateral dialogue for regular exchanges and to promote broader international cooperation.
Also, as the world’s largest economies and major emitters of greenhouse gases, these three powers should discuss sustainable development solutions.
Due to cultural and systemic differences, there is more competition between China and the US than cooperation. If both sides can coexist in a context of competition and cooperation, they may be able to reach a new balance by 2035.
There are four domains in which China and Europe can cooperate to forge a more multipolar world.
Last but not least, China and Europe can cooperate on smoothing the movement of their citizens. Freeing up the flow of people is part of globalisation, and has an impact on trade, investment and technological exchanges, promoting the exchange of culture and ideas.
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But China should also continue to work on attracting talent, especially from Europe, by further liberalising its visa policy to promote people-to-people connectivity and help build global consensus.
Global governance needs to be more inclusive and geared towards 21st century problems such as climate change and social inequality. This can be done by boosting free trade, overcoming the global infrastructure gap and closing the digital divide. China is a beneficiary of globalisation, and its economy has continued to mature, entering an age of high mass consumption, similar to Europe of the past.
It is clear that China and Europe face obstacles to greater cooperation, with pressures both internal and external. But it is in the interests of both to play a leading role together in shaping the next iteration of a more resilient, inclusive and sustainable model of globalisation.
Wang Huiyao is president of the Center for China and Globalization