Light Up Our Way Forward with Multilateralism

Light Up Our Way Forward with Multilateralism*

January 25, 2021

Professor Klaus Schwab,
Ladies and gentlemen,
Friends,

The past year was marked by the sudden attack of the Covid-19 pandemic. Global public health faced a severe threat, and the world economy was mired in deep recession. Humanity encountered multiple crises on a scale unseen in history.

The past year also witnessed the enormous resolve and courage of people around the world in battling the deadly coronavirus. Guided by science, reason, and a humanitarian spirit, the world has achieved initial progress in fighting Covid-19. That said, the pandemic is far from over. The recent resurgence in Covid cases reminds us that we must carry on the fight. Yet we remain convinced that winter cannot stop the arrival of spring, and darkness can never shroud the light of dawn. There is no doubt that humanity will prevail over the virus and emerge even stronger from this disaster.

Ladies and gentlemen,
Friends,

Time moves on, and the world will not go back to what it was. Every choice and move we make today will shape the world of the future. It is therefore important that we properly address the following four topics of our time.

The first is to step up macroeconomic policy coordination and jointly promote strong, sustainable, balanced and inclusive growth of the world economy.

We are going through the worst recession since the end of World War II. For the first time in history, the economies of all regions have been hit hard at the same time, with global industrial and supply chains disrupted and trade and investment stagnating.

Despite the trillions of dollars in relief packages worldwide, the global recovery is unstable, and the outlook remains uncertain. We need to focus on current priorities and balance Covid response and economic development. Macroeconomic policy support should be stepped up to bring the global economy back on track as early as possible. More importantly, we need to look beyond the horizon and strengthen our will and resolve for change. We need to shift the driving forces and growth models of the global economy and improve its structure, so as to set the course for long-term, sound and steady development.

The second is to abandon ideological prejudice and jointly follow a path of peaceful coexistence, mutual benefit, and win-win cooperation.

No two leaves in the world are identical; the same holds true for our histories, cultures and social systems. Each country is unique, with its own history, culture and social system, and none is superior to others. What is important is whether a country’s social system fits its national conditions, enjoys public endorsement and support, serves to deliver political stability, social progress and better lives, and contributes to human progress.

The differences in our histories, cultures and systems are as old as human societies themselves; they are the intrinsic characteristics of human civilization, which would have long perished without diversity. Diversity is an objective reality and this will not change. Difference in itself is no cause for concern. What does sound the alarm is arrogance, prejudice and hatred; it is the attempt to impose a hierarchy on human civilization or force one’s own historical experience, culture and social system upon others. All countries should pursue peaceful coexistence on the basis of mutual respect, seek common ground while shelving differences, and promote exchanges and mutual learning. This will give impetus to the development of human civilization.

The third is to close the divide between developed and developing countries and jointly bring about growth and prosperity for all.

Today, inequality continues to grow, the North-South gap remains unbridged, and sustainable development faces severe challenges. As countries grapple with the pandemic, their economic recovery is following divergent trajectories, and there is a risk that the North-South gap will widen further or even be perpetuated. Developing countries are aspiring to obtain more resources and space for development, and they are calling for stronger representation and a louder voice in global economic governance.

We should recognize that the growth of developing countries will put global prosperity and stability on a more solid footing, and developed countries will stand to benefit from such growth. The international community should keep its eye on the long term, honor its commitments, provide necessary support to developing countries, and safeguard their legitimate development interests. Equal rights, equal opportunities and equal rules should be strengthened, so that all countries will benefit from the opportunities and fruits of development.

The fourth is to come together against global challenges and jointly create a better future for humanity.

In this era of economic globalization, public health emergencies like Covid-19 may very well recur, and global public health governance needs to be reinforced. The earth is our one and only home. The future of humanity depends on our scaling up efforts to address climate change and promote sustainable development. No global problem can be solved by any one country alone. There must be global action, global response and global cooperation.

Ladies and gentlemen,
Friends,

The problems confronting the world are intricate and complex. Their solutions will come through upholding multilateralism and building a global community of shared future.

– We should stay committed to openness and inclusiveness and avoid closure and exclusion.

Multilateralism is about having international affairs addressed through consultation and the future of the world decided by everyone working together. To create exclusive circles or start a new Cold War, to reject, threaten or intimidate others, to grant oneself the right to engage in arbitrary decoupling, supply disruption or sanctions, and to create isolation or estrangement will only push the world into division and eventual confrontation. We cannot tackle common challenges in a divided world, and confrontation will lead us nowhere. Humanity has learned the lesson the hard way, and that history is not long gone. We must not return to the path of the past.

The right approach is to act on the vision of a global community of shared future. We should uphold the common values of humanity – peace, development, equity, justice, democracy and freedom, rise above ideological prejudice, make the mechanisms, principles and policies of our cooperation as open and inclusive as possible, and jointly safeguard world peace and stability.

We should build an open world economy, uphold the multilateral trading system, discard discriminatory and exclusionary standards, rules and systems, and break down barriers to trade, investment and exchanges of technology. We should strengthen the G20 as the premier forum for global economic governance, engage in closer macroeconomic policy coordination, and keep the global industrial and supply chains open and stable. We should ensure the sound operation of the global financial system, promote structural reform and expand global aggregate demand in an effort to strive for higher quality and stronger resilience in global economic development.

– We should stay committed to international law and international rules instead of seeking supremacy.

The ancient Chinese believed that “the law is the very foundation of governance”. International governance should be based on rules agreed and consensus reached by all, not on the order imposed by one or the few. The Charter of the United Nations provides the basic and universally recognized norms governing state-to-state relations. Without international law and international rules that are formed and recognized by the global community, the world may return to the law of the jungle, and the consequence would be devastating for humanity.

We need to be resolute in championing the international rule of law, and steadfast in our resolve to safeguard the international system centered on the UN and the international order based on international law. Multilateral institutions provide the platforms for putting multilateralism into action, and they are the basic architecture underpinning multilateralism. Their authority and effectiveness should be respected and safeguarded. State-to-state relations should be coordinated and regulated through proper institutions and rules. The strong should not abuse the weak. Decisions should not be forced through by a display of strong muscles or by waving a big fist. Multilateralism should not be used as a pretext for acts of unilateralism. Principles should be observed and rules, once made, should be followed by all. “Selective multilateralism” should not be an option.

– We should stay committed to consultation and cooperation rather than conflict and confrontation.

Differences in history, culture and social system should not be an excuse for antagonism or confrontation, but rather an incentive for cooperation. We should respect and accommodate differences, avoid meddling in other countries’ internal affairs, and resolve disagreements through consultation and dialogue. History and our experience have made it clear, time and again, that the misguided approach of antagonism and confrontation, be it in the form of cold war, hot war, trade war or tech war, will eventually hurt all countries’ interests and undermine everyone’s wellbeing.

We should reject the outdated Cold War and zero-sum game mentality, adhere to mutual respect and mutual accommodation, and reinforce political trust through strategic communication. It is important that we stick to the cooperation concept based on mutual benefit, say no to narrow-minded, selfish beggar-thy-neighbor policies, and stop the practice of keeping to oneself all advantages gained in development. Equal rights to development should be guaranteed for all countries to promote common development and prosperity. We should advocate fair competition, like competing with each other for excellence on a racing track, not attacking each other in a life-or-death fight.

– We should stay committed to keeping up with the times.

The world is undergoing change on a scale unseen in a century, and now is the time for major development and major transformation. To uphold multilateralism in the 21st century, we should promote its best traditions, take on new perspectives, and look to the future. We must stand by the core values and basic principles of multilateralism. We should also adapt to the changing international landscape, respond to global challenges as they arise, and reform and improve the system of global governance on the basis of extensive consultation and building consensus.

We must give full play to the role of the World Health Organization in building a global community of health for all. We should advance reform of the World Trade Organization and the international financial and monetary system in a way that boosts global economic growth and protects the development rights, interests and opportunities of developing countries. We should adopt a people-centered and facts-based approach when we make policies and develop international rules on global digital governance. We should deliver on the Paris Agreement on climate change and promote green development. We should continuously prioritize development, implement the 2030 Agenda for Sustainable Development, and see that all countries, especially developing ones, are able to enjoy the fruits of global development.

Ladies and gentlemen,
Friends,

After decades of strenuous effort by all its people, China is on course to finish building a moderately prosperous society in all respects. We have achieved historic gains in ending extreme poverty, and have embarked on a new journey towards building a modern socialist country. As China enters a new development stage, we will follow a new development philosophy and create a double development dynamic with the domestic economy as the mainstay and the domestic economy and international engagement providing mutual reinforcement. China will work with other countries to build an open, inclusive, clean and beautiful world that enjoys lasting peace, universal security, and common prosperity.

– China will continue to take an active part in international cooperation on Covid-19.

Containing the coronavirus is the most pressing task for the international community. This is because people and lives must always come before anything else. It is also what it takes to stabilize and revive the economy. Greater solidarity, closer cooperation, more information sharing, and a stronger global response are what we need to defeat Covid-19 across the world. It is especially important to scale up cooperation on the R&D, production and distribution of vaccines, and make them a public good that is easily accessible and affordable for people in all countries.

To date, China has provided assistance to over 150 countries and 13 international organizations, and sent 36 teams of health and medical experts to countries in need. China is strongly supportive of and actively engaged in international cooperation on Covid vaccines. 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, and work to make Covid vaccines more accessible and affordable in developing countries. We hope these efforts will contribute to an early and complete victory over the coronavirus throughout the world.

– China will continue to implement a win-win strategy of opening up.

Economic globalization meets the requirements of growing social productivity and is a natural outcome of scientific and technological progress. It serves no one’s interest to use the pandemic as a pretext to reverse globalization in favor of seclusion and decoupling.

As a longstanding supporter of economic globalization, China is committed to following through on its fundamental policy of opening up. China will continue to liberalize and facilitate trade and investment, help keep global industrial and supply chains smooth and stable, and advance high-quality Belt and Road cooperation. China will promote institutional opening up that covers rules, regulations, management and standards. We will foster a business environment that is based on market principles and governed by law, and meets international standards, and we will unleash the potential of the huge China market and enormous domestic demand. We hope these efforts will bring more cooperation opportunities to other countries and add further impetus to global economic recovery and growth.

– China will continue to promote sustainable development.

China will implement, in full, the 2030 Agenda for Sustainable Development. We will do more on the eco-environmental front by transforming and improving our industrial structure and energy mix at a faster pace and promoting green, low-carbon ways of life and work.

I have announced China’s goals to achieve peak carbon dioxide emissions before 2030 and carbon neutrality before 2060. We must make a tremendous effort to meet these targets. We always believe that when the interests of the whole of humanity are at stake, China must step forward, take action, and get the job done. China is already drawing up action plans and taking specific measures to make sure we meet the set targets. We are doing this as a concrete action to uphold multilateralism and as a contribution to protecting our shared home and realizing sustainable development.

– China will continue to advance science, technology and innovation.

Science, technology and innovation are the key engines for human progress. They are a powerful weapon to overcome many global challenges, and they provide the only way for China to foster the new development dynamic and achieve high-quality development.

China will invest more in science and technology, develop an enabling system for innovation as a priority, turn breakthroughs in science and technology into productive forces at a faster pace, and strengthen protection of intellectual property rights, all with the goal of fostering innovation-driven, higher-quality growth.

Scientific and technological advances should benefit all of humanity rather than be used to curb and contain the development of other countries. China will be more open in its thinking and actions with regard to international exchanges and cooperation on science and technology. We will work with other countries to create an open, fair, equitable and nondiscriminatory environment for scientific and technological progress that is beneficial to all and shared by all.

– China will continue to promote a new model of international relations.

The Chinese people do not believe in the zero-sum game or winner-takes-all thinking. As a staunch follower of an independent foreign policy of peace, China is working hard to bridge differences through dialogue and resolve disputes through negotiation and to pursue friendly and cooperative relations with other countries on the basis of equality, mutual respect, and mutual benefit.

As a steadfast member of the developing world, China will further expand South-South cooperation, and contribute to the efforts of other developing countries to eradicate poverty, ease their debt burden, and achieve more growth. China will become more actively engaged in global economic governance and push for an economic globalization that is more open, inclusive, balanced and beneficial to all.

Ladies and gentlemen,
Friends,

There is only one earth and one shared future for humanity. As we deal with the current crises and endeavor to make a better day for everyone, we need to stand united and work together. History demonstrates time and again that to beggar thy neighbor, to go it alone, or to slip into arrogant isolation will always fail. Let us all join hands and let multilateralism light our way towards a global community of shared future.

Thank you.

* Special address at the World Economic Forum Virtual Event of the Davos Agenda.

(Not to be republished for any commercial or other purposes.)