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Problematic panorama

Reform of the global governance system is vital to prevent a dangerously divisive future

By JEAN-PAUL VARGAS CéSPEDES | China Daily Global | Updated: 2025-01-08 08:35
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JIN DING/CHINA DAILY

Global governance must reflect the values of its time, hence it needs to focus on solidarity and cooperation among countries worldwide. The concept promoted by China of an equal and orderly multilateralism is the path to cooperation and understanding between all parties, a difficult, arduous and perhaps slow process for nations that are not accustomed to sincere dialogue and negotiation under the increasing shadow of protectionism and unilateralism.

On Jan 20, Donald Trump will be sworn in as the 47th president of the United States. With his coming to power for the second time, nations are waiting for a series of decisions with global implications that will affect, in one way or another, the global situation, among which are the US' position in regard to the NATO and the future of the Ukraine crisis, as well as the situation in the Middle East.

At the same time, an intensification of trade tensions is anticipated due to the position of the US in considering international trade as part of its apparatus of national security. Trump suggested during his campaign that he could impose tariffs of up to 60 percent on all imports from China, which would have a devastating impact, even on the domestic consumption of the US people, given their great dependence on global imports.

The effects of these declarations have forced the international community to be vigilantly prepared, rather than opting for a direct confrontation, in a context in which the trade in goods and merchandize given by logistical improvements and global connectivity become elements of national security, according to the US policy.

Trump's second term in office heralds in a new deal with US society that is being strained by the interests of an oligarchy that aspires to greater technological monopoly and a model of global governance in which they themselves impose the rules of the game and consolidate themselves as the main winners of international trade.

The domestic society faces a divisive future where competing forces will rally together seeking the preservation and protection of identity, the erection of walls and the prioritizing of their interests.

The increase of tariffs by the US will affect a wide variety of countries and make them less competitive in the US market. And with the US banning products that use parts or technologies from China, Latin American economies are facing great pressure to decouple from China.

This panorama reiterates the need to promote an urgent dialogue on the reform of world governance to consolidate a community with a shared future. The deglobalization by the US has identified a set of technologies that it considers to be sensitive for its national security, among them: computing, biotechnologies and the so-called green technologies.

On its part, China is increasingly establishing itself as the superpower of smart innovation and entrepreneurship, with global leadership in the establishing of an ecological civilization, offering solutions capable of bringing harmony between society, economy and nature with innovations in green technologies.

In 2025, a year of the snake in the Chinese zodiac, we are encouraged to reclaim intelligence, goodwill, imagination and capacity to innovate, which are essential for enhancing global governance. China should call for strengthening international cooperation to collectively address global challenges. It should also emphasize the importance of creating conditions conducive to stabilizing the global economy and ensuring sustainable growth and development.

China advocates for greater openness to advance trade and investment liberalization and facilitation, fostering a more interconnected and prosperous global market. Integrating the digital economy with the real economy and establishing standards in emerging areas are crucial steps for future progress. Additionally, China underscores the need to adhere to the principle of common but differentiated responsibilities, promoting comprehensive and effective implementation of green infrastructure, energy, mining, and transport, while also providing support to developing countries within its means.

The ability to reform the global economic governance system will be able to restore a degree of stability to an increasingly tense world, in which geopolitical risks and economic rivalries are intertwined with the processes of automation, technological innovation and the energy transition. Without such reform the decoupling of supply chains and the fragmentation of global industry will gather pace over the next decade.

The question to be clarified is whether, in the midst of the noise, reliable channels can be effectively established to channel disagreements and identify the sources of tension. China is, and will continue to be, a major power, consolidating its leadership in different areas, including innovation, especially green innovation, infrastructure, modernization and global trade, particularly with the Global South, which continues to see China as an illuminating beacon in a world that is convulsed, fragile and volatile.

The author is director of the Doctorate Program in Public and Business Management at the Costa Rica-based Central American Institute of Public Administration. The author contributed this article to China Watch, a think tank powered by China Daily.

Contact the editor at editor@chinawatch.cn.

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