Multilateralism Is the Way out

On January 25, President Xi Jinping delivered a special address titled “Let the Torch of Multilateralism Light up Humanity’s Way Forward” at the World Economic Forum Virtual Event of the Davos Agenda. More than 2,000 people joined the meeting under the theme of “A Crucial Year to Rebuild Trust” to address multiple challenges posed by the COVID-19 pandemic and seek for greater global cooperation. At the moment when the pandemic continues to spread, the international community once again places high hopes on Chinese experience and solutions to infuse stronger impetus into global development. President Xi Jinping said that China will take the responsibility as a major country and contribute its strength to world economic recovery and cooperation in the fight against the pandemic.

Four year ago, President Xi Jinping pointed out in his keynote speech at the opening ceremony of the 2017 World Economic Forum that we must redouble efforts to promote multilateralism and keep to the goal of building a community of shared future for mankind. His words showed us the way forward for economic globalization.

Today, the COVID-19 pandemic continues to spread around the world, and the world needs a solution to this major crisis. As President Xi emphasized in his speech, “the problems facing the world are intricate and complex. The way out of them is through upholding multilateralism and building a community with a shared future for mankind”, “to uphold multilateralism in the 21st century, we should promote its fine tradition, take on new perspectives and look to the future. We need to adapt to the changing international landscape and respond to global challenges as they rise”, and “we should stay committed to openness and inclusiveness, to international law and international rules, and to consultation and cooperation instead of conflict and confrontation.” His speech calls for the world to adhere to and implement multilateralism.

In the past year, the global economy fell into deep recession. The pandemic has also brought about new development opportunities in globalization and industrial transformation. Whether in dealing with challenges or seizing opportunities, it is necessary to join hands and move forward together.

The pandemic has dealt historic blows to the global industrial chain, supply chain, and value chain, and led to a series of problems such as global economic downturn, market volatility, and weak consumption and investment. A report released by the OECD in December 2020 showed that under the severe impact of the pandemic, the global economic recovery is full of uncertainty and regional variation.

First of all, huge differences presented themselves in world economic recovery in the post -pandemic period. With sound economic foundation and strong fiscal stimulus, developed economies are expected to recover rapidly. Undeveloped countries with low levels of healthcare and economic foundation were the worst affected. In terms of industries, retailing and e-commerce have rebounded quickly, but service industry and international travel are still in stagnation.

Second, the combination of existing structural problems and the impact of the pandemic have exacerbated uneven development. Some Western countries exposed their structural problems in the labor market, production, and resource allocation in the early stage of the pandemic. The impact of the pandemic has made the rich richer and the poor poorer, which further intensified class and social divisions.

Besides, deficits in industry funds and production, and industry transformation continue to get worse. In many developed economies, industries are still running under capacity compared to pre-pandemic levels. In some countries, investments in industries and businesses remain at a low level. On one hand, there is a strong need to mitigate the impacts on finance, manpower, and supply. On the other hand, we also need to seize the first opportunities for digital development and green development, speed up the shutdown of outdated production capacities, and increase investment in technology and manpower.

President Xi's speech, proceeding from upholding and practicing multilateralism, pointed out the direction for all parties to respond to the pandemic and accelerate economic recovery.

First, multilateralism will help to reshape the global governance system based on the changes in the world structure. President Xi said, “We should stay committed to openness and inclusiveness instead of closeness and exclusion.” This will further strengthen the authority of the international system with the United Nations at its core and multilateralism, and increase the voice of developing countries in international affairs, so that all parties can jointly safeguard world peace and stability and build an open world economy.

Second, multilateralism brings strong impetus for global economic recovery. President Xi said, “As a longstanding supporter to economic globalization, China is committed to following through on its fundamental policy of opening-up.” This will further unite all parties, providing strong and sustained impetus to global economic recovery and globalization through cooperation and innovation.

Third, multilateralism helps to promote international cooperation against the virus. President Xi emphasized, “China will continue to take an active part in international cooperation on COVID-19”, “China will continue to share its experience with other countries, do its best to assist countries and regions that are less prepared for the pandemic.” This will further enhance cooperation in fighting against the virus, vaccines development and distribution, as well as in providing anti-pandemic materials.

The speech of the President Xi demonstrated China’s leadership as a major country in promoting globalization, and made clear that China will make greater contributions to global economic recovery in the post-pandemic era. A latest OECD report shows that China is the only country that achieved positive growth in 2020, and China’ economic growth is estimated to reach 8% in 2021. As the first country in the world that has contained the pandemic and achieved stable socio-economic development, China’s economy will become more resilient, sustainable, competitive, and inclusive.

Containing the pandemic and achieving economic recovery are two major challenges facing the world, and also the two fields where multilateralism is most badly needed. In the past year, China proved through actions that it will continue to jointly preserve and practice multilateralism, and promote the building of a community with a shared future for mankind. President Xi called for letting the torch of multilateralism light up humanity’s way forward, which will surely receive positive responses from the international community.

Contributed by Wan Zhe, Beijing Normal University

Translated by Ren Meiqi