By Zhao Kejin

On 10^th November, 2017, after the historic meeting in Beijing between the leaders of China and the U.S., China’s President Xi Jinping attended the APEC CEO Summit in Da Nang, Vietnam. He delivered a keynote speech titled “ Seizing the Opportunity of a Global Economy in Transition and Accelerating Development of the Asia-Pacific“.

Xi Jinping emphasized that we live in a fast changing world, and the global economy is undergoing more profound changes.?We must therefore closely follow the trend of the global economy, identify its underlying dynamics, keep to the right direction, and, on that basis, take bold action.

The APEC CEO Summit was the first multilateral conference attended by China’s president following the 19th National Conference of CPC. What plans did President Xi Jinping put forward in his speech? And what missions and responsibilities does China plan to take on at a time when the Asia-Pacific region is facing not only opportunities but also challenges?

China’s Plan

Focusing on the great global economic transition, Xi Jinping foresees a new future with development and prosperity for the Asia-Pacific region. In his speech he put forward China’s plan for cooperation in this region.

He elaborated four new trends in today’s global economic development:

First, transition of growth driving forces. Innovation-driven development has become the key to global economic transition and growth;

Second, transition of the global development model. More comprehensive development with higher quality and better sustainability has become the common goal pursued by the international community;

Third, changes in economic globalization, which focus on openness, inclusiveness, balance, equal benefits for all, fairness, and win-win results;

Fourth, changes in the global system of economic governance. Through multilateralism, close partnerships, discussion and collaboration, the global system for economic governance aims to achieve shared growth and to build a common future for all.

Asia Pacific Architecture

What can Asia-Pacific do in response to the changing world? Xi Jinping proposes that the region should follow the general trend and be bold in working together to open up a bright future of development and prosperity.

He believes that faced with the profound changes in the global economy, we must advance with the trend of times, live up to our responsibility and work together to deliver a bright future of development and prosperity for the Asia-Pacific.

• Open development

Based on his vision for development in the region, Xi Jinping proposes a regional cooperation framework with equal consultation, extensive participation, and universal benefits, to support the multilateral trading system and open regionalism. Through the establishment of an Asia-Pacific free trade area, an open Asia-Pacific economy can be built, and free trade and an expedient investment environment can be encouraged.

Through further opening up of all the countries in this region, any differences can be tided over, inclusive economic globalization can be encouraged, and people from different classes, groups, parties and countries can benefit.

• Innovative development

In response to the challenges caused by the global financial crisis since 2008, most countries have used traditional economic instruments such as monetary policy and fiscal policy to manage their economic growth, but there has been no significant impact. The main reason is that it the predicament faced by the global economy today is structural. Without breakthroughs in structural transformation and upgrading, it will be very difficult to achieve a new leap in global economic development.

In his speech Xi Jinping emphasized the need to drive structural transformation and upgrading through scientific, technological, and industrial revolution. With deeper cooperation between new industries and new technologies such as the artificial intelligence, nrw materials, Internet and the digital economy, we can further promote structural reform and eliminate the obstacles impeding innovation in order to stimulate market vitality.

• Joint development

Xi Jinping advocates that Asia-Pacific countries should continue to enhance connectivity and achieve interconnected development.

The Belt and Road Initiative proposed by China received widespread attention and was highly welcomed. It is now making rapid progress. Xi Jinping believes that the core of the Belt and Road Initiative includes infrastructural construction and connectivity. With stronger and better coordinated economic policies, and docking of development strategies, synergic and coordinated development can help to realize common prosperity.

• Inclusive development

The Asia-Pacific is one of the most diverse and complex regions. It contains some of the most developed countries and the least developed countries in the world, with substantial differences in geographical location, climatic characteristics, historical traditions, ethnic makeup, religious beliefs, and local customs and practices.

In order to achieve common development in such a complex region, Xi Jinping emphasized the need to make economic development more inclusive and deliver its benefits to our people. “Hard work is still needed if we are to bring the benefits of development to countries across the globe and people across our society.”

China’s Responsibilities

China is not only the initiator but also the practitioner of the cooperative framework in Asia-Pacific region. As the world’s second largest economy and an important member of the Asia-Pacific region, China will not evade its responsibilities.

In his speech, Xi Jinping also asserted that China understands its own responsibilities. From the perspective of the historical process of China’s development, he expounded China’s position and proposals as a responsible power in the Asia-Pacific region.

Contrary to some speculation and rumors, China’s actions in the Asia-Pacific region are not based on any “strategic ambitions” or the pursuit of any “sphere of influence”. Rather, they are an objective requirement that stems from a practical need to build a global free trade area network as China’s own economy shifts from rapid growth to high-quality development.

Only when the world is good, and Asia is good, can China be good. According to Xi Jinping’s speech, after the 19th National Conference of CPC, China has entered a new era when China cannot develop without the world, but must work together with others.

China will therefore play a more active role in world affairs and will be more proactive, joining with other countries to build a world of long lasting peace, universal security, common prosperity, openness, inclusiveness, cleanliness and beauty.

This first speech delivered by China’s president on the world stage since the 19th National Conference of CPC shows that Xi Jinping is leading China, as an increasingly powerful country, onto the center of the world stage. He is striving for common development, shared security, and joint governance between China and the rest of the world, with the Asia-Pacific operating as the pilot region in this effort.

Zhao Kejin, Vice President and Professor of Institute of International Relations in Tsinghua University

Opinion articles reflect the views of their authors, not necessarily those of China Matters