China offers leadership in global free trade

The 2025 APEC Economic Leaders' Meeting in Gyeongju in the Republic of Korea is clearly going to be among the most crucial of all the forum's meetings since 1993.

Since the Asia-Pacific Economic Cooperation forum's beginning in 1989, its spirit of open trade and cooperation has promoted the impressive economic growth of its member economies, as real GDP rose from approximately $19 trillion to $52.8 trillion between 1989 and 2021, an increase of more than 175 percent.

This growth has uplifted millions of poor people and increased per capita income almost fourfold. In addition, the region's trade expanded significantly, as tariffs fell most of the time and total merchandise trade expanded more than ninefold among many member economies.

Yet the Trade War 2.0 launched this year by the US administration, a reversal of the spirit of free trade long championed by Washington, has sent shock waves across the Asia-Pacific region, with more than half of the 21 member economies targeted by US tariffs. As early as May this year at the APEC ministerial meeting, warnings were aired of stalling trade, and export growth declined to 0.4 percent and economic growth to 2.6 percent from 3.6 percent in 2024. Globally, the World Bank expects a slowdown in economic growth, as global economic growth is forecast to decline to 2.3 percent, from 2.8 percent in 2023 and 2024.

Considering that APEC 2025's theme is "building a sustainable tomorrow", promoting dialogue for economic growth is of utmost importance amid the global trade and economic crisis environment of these times. APEC 2025 calls out to "connect, innovate and prosper", providing the guidelines for strengthening regional trade and investment, advancing digital and artificial intelligence-driven innovation, and promoting sustainable economic and environmental initiatives. Thus, the world can revitalize free trade and digital economies and expand people-to-people exchanges.

It is fortunate that APEC counts China among its enthusiastic members. As the world's largest trading nation, it can help APEC recover from trade wars by promoting the group's free trade pacts, enhancing regional value chains, and strengthening Asia-Pacific cooperation and the digital and green economies. China's upgrading of its free trade agreement with ASEAN and promotion of an Asia-Pacific Free Trade Area offer a model to recovery by expanding market access and connectedness in the face of rising protectionism in the Western Hemisphere.

China has been providing the world with leadership in global free trade by timely initiatives: introduction of the zero-tariff policy for exports from 53 African countries, and diversifying many of its agricultural imports from the West by turning to tariff-hit countries of the Global South like Brazil and Argentina.

China's infrastructure and trade investment projects, such as Chancay Port in Peru, an APEC member, will go a long way toward expanding trade with Latin America. Investments such as these are being made by China in many other APEC economies.

China is accelerating efforts to strengthen trade relations with members of ASEAN as the world faces tariff wars, inking their free trade deal 3.0, which expands cooperation in agriculture, digital trade and pharmaceuticals. Trade has already expanded, with ASEAN enjoying more imports while exports and investments have ramped up. ASEAN economies are committed to strengthening China-ASEAN trade amid economic headwinds from the tariff war.

As the Global South Media Network said in a headline in June, "China steps in to rescue the Global South as President Trump's tariffs wreak havoc." As much as global trade needs a rescue, so does global governance, as the West's transgressions of United Nations-based international law disrupt global stability. This crisis has come to the global majority's attention, which was highlighted in recent international consultations such as those of the Shanghai Cooperation Organization in September, during which India and Russia joined China to address the crises.

That's when President Xi Jinping articulated the vision of the Global Governance Initiative. Xi reiterated that all nations, big and small, must adhere to sovereign equality, abide by international law, practice multilateralism, advocate the people-centered approach, and focus on taking real, visible actions. Thus the world can better tackle the common challenges for mankind, better narrow the North-South gap, and better safeguard the common interests of all countries.

The Global Governance Initiative is actually a culmination of China's vision of working with all economies for more just and equitable global governance, paving the way for a fully sustainable tomorrow, and advancing toward a community with a shared future for humanity.

When the economic leaders of the 21 APEC economies gather to "connect, innovate and prosper", real steps could be taken to overcome the barriers and divisions that the Trade War 2.0 has introduced. China has shown the way out of the tariff war crisis by leading greater open trade, cooperation and innovation among economies, but the global environment must also be conducive to global peace and stability. That's where the Global Governance Initiative's imperative must also be factored in.

The author is founder and president of the Asian Century Philippines Strategic Studies Institute.

The views do not necessarily reflect those of China Daily.