The global economy and multilateral trading system is facing the challenge of rising protectionism.Huang Xuncai, Vice Premier and Minister of Finance, said that the country and enterprises seeking de -risk can be understood, but de -risk is going on according to the current ambitions and scale, it is difficult to not affect the wider economic interaction.
Huang Xuncai pointed out that if the risk is too much, the global economy will be more fragmented and decoupled. At present, foreign direct investment flows in the world have become more and more concentrated in countries with the same geopolitical position.
Huang Xuncai, who is visiting Japan on Thursday (May 25), delivered a speech at the future of the 28th Nikkei Forum in Asia. It is mentioned that one of the major global challenges that Asia must respond is to protect the head of protectionism and is weakening the multilateral trading system and the global economy.Essence
He said that in all parts of the world, countries have given priority to domestic affairs and national security. Compared with the past people's visual trade as a win -win situation, zero and competition now become the norm in many fields, involving key key to trade, investment, finance, and semiconductors.Technology, etc.Global companies are also reorganized under the consideration of geopolitical risks to transfer the supply chain to shore production or near -shore outsourcing.
Huang Xuncai said that we can understand why the country and enterprises seek risks or decentralized risks.No one wants to excessively rely on a single supply source in raw materials, critical parts or technology.However, it is difficult to see how riskyization can only be restricted in a few lsquo; strategic rsquo; not affecting a larger scope of economic interaction with the current ambitions and scale.If the risk is too much, it will cause reaction and expected consequences.Over time, the end result is that the global economy is more fragmented and decoupled.
He pointed out that the global foreign direct investment flow has become more and more concentrated in the geopolitical standing.Compared with the globalization of the past 30 years, it has marked major changes.In the past 30 years, investors have allocated capital based on business considerations, and companies have left their footprints around the world and connected them through the global supply chain.Asian countries have benefited a lot in this integration process, and established their respective economies around global investment, allowing millions of people to get out of poverty.
Huang Xuncai said: A fragmented global economy will split the world into a competitive regional group.Trade will decrease, investment will decrease, and the spread of ideas will also reduce MDash; mdash; this is the key factor that helps us economic progress.All of this will make it more difficult for developing countries in Asia to be in line with the advanced world.
He emphasized that Asian'an is committed to maintaining more open economic cooperation, which means actively cooperating with partners outside Asia and establishing contact with new partners.Asianan will also continue to connect partners in Asia with various economic arrangements such as regional comprehensive economic partnership (RCEP).
At the same time, he urged him to continue to strengthen multilateral institutions and consolidate the order of economic development and cooperation based on rules.
Huang Xuncai described that the World Trade Organization (WTO) is a key institution.He said: Although bilateral and regional protocols reached outside the WTO can be a helpful lsquo; secondary rsquo; solution, they cannot replace a global trading system that is well -operated and based on rules.Effectively handle tariffs, protectionist industrial policies, intellectual property and dispute resolution.
Must be able to make the WTO appealing agency operate normally
In order to restore the WTO's efficiency and maintain its rules, Huang Xuncai believes that it is necessary to find a way to let its appellate body operate normally.Otherwise, if each country believes that it will decide when national security considers when it is over the multilateral rules, we will eventually fall into LSQUO; power is the system of justified RSquo; and weak meat and strong food.
Other international financial architectures that need to be revived also include World Bank and International Monetary Fund.Huang Xuncai said that the Bretton Woods mechanism was established to help the country's reconstruction after World War II, not designed to deal with many new global challenges we face today.Therefore, they need to be strengthened to expand their mission to better use fiscal resources to fund global public products.
