Sino-US cooperation vital to advance world development goals and realize shared prosperity

Globalization revolutionized the world economy, its growth and development. It fueled innovation, technological development and the expansion of new means of communication and transportation. World Bank data shows that global GDP increased from around $3 trillion in the 1970s to $105 trillion in 2023.

Now, digitalization has put globalization on the fast track and brought the world market at one’s fingertips.

Globalization has helped the world pursue prosperity, tackle challenges and live peacefully. The United States, China, Europe, Japan, South Korea, member countries of the Association of Southeast Asian Nations and the Gulf Cooperation Council states have been the biggest beneficiaries of a globalized world.

One can argue that the US has built its empire on the back of globalization. The US had a dream to access the global markets and expand its business and reach. Mechanisms like the World Trade Organization consolidated the US’ role and helped it realize its dreams.

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On the other hand, China is the best case for understanding the importance of globalization. The country began developing at pace after introducing reforms in the late 1970s. Joining the WTO in 2001 only accelerated the rate of its economic expansion.

Globalization has become increasingly important in the age of global supply and value-added chains. The Organisation for Economic Cooperation and Development estimates that more than 70 percent of global trade is routed through global value chains.

The situation demands strengthened globalization but this will be unattainable without close cooperation between the world’s two biggest economies, the US and China. Unfortunately, the US, once a leader and forceful advocate of globalization, appears to be changing its stance.

The process began with the 2008 global financial crisis. Instead of fixing its domestic problems, the US launched a campaign against China. In 2009, then-US president Barack Obama introduced the “Pivot to Asia” policy to check China’s peaceful development.

Donald Trump, during his first presidency, then raised the slogan “America First” and unleashed trade barriers, tariffs and sanctions, with China and Chinese companies the main targets.

After the 2020 election, it was hoped that President Joe Biden would reinstate the old policy of globalization. Unfortunately, he opted to accelerate the anti-globalization drive, specifically targeting China and Chinese businesses.

Trump is set to be back in the White House again, and it is feared he will start a new trade war and anti-globalization drive.

Anti-globalization policies have hit infrastructure badly. The UN’s Sustainable Development Goals Report 2024 estimated that the investment gap for developing countries to meet the SDGs’ needs is around $4 trillion.

China foresaw this situation much earlier, and to avert the worst consequences, it started constructing new mechanisms to sustain the globalization process.

First, it launched the Belt and Road Initiative. According to the latest available data, 153 countries and 32 international organizations have signed BRI cooperation agreements. China has invested almost $1 trillion, which helped mobilize $2.49 trillion from partners while implementing 3,220 joint projects.

Second, China launched the Asian Infrastructure Investment Bank to contribute to bridging the investment gap. The bank was started with $100 billion and 57 members. Now, it has 109 members and the AIIB also supports non-regional projects, so long as those projects help promote global trade, economic integration and linkage with Asia.

Third, the country launched the China International Import Expo to promote globalization. The idea of the CIIE was proposed and promoted by President Xi Jinping himself to fulfill his promise of high-standard opening-up.

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Fourth, China is also investing in infrastructure and trade linkages under development programs such as the Global Development Initiative and South-South cooperation. Under the South-South Cooperation Assistance Fund, for instance, China has implemented projects in more than 50 countries, benefiting over 20 million people.

Now, imagine a world where China did not invest in infrastructure and globalization or create avenues for financial support and trade linkages — the picture would be very scary.

However, China alone cannot fill the global gap. The same is true for the US. The two countries need to cooperate to strengthen globalization, and cooperation and globalization must be based on a people-first, not country-first, approach. Cooperation for globalization should lead the world to achieve sustainable development goals and build a community with a shared future for mankind.

The author is CEO of the Asian Institute of Eco-civilization Research and Development in Pakistan. 

The views do not necessarily reflect those of China Daily.