Meaningful alignment

China and Russia should deepen and broaden their collaboration so they can play a more substantive role in advancing reform of the global economic governance architecture

The current global economic governance system has long failed to adapt to the profound changes in the global economic landscape and to effectively address cross-border economic threats. There is widespread international agreement that the system urgently needs fundamental reform. China and Russia have maintained steady and productive cooperation in this process, but their collaboration in regional economic governance remains limited in both depth and scope. Moving forward, the two countries should prioritize their long-term strategic interests and the global common good, and deepen their coordination on reform of both the regional and global governance architectures.

Since the end of the Cold War, China and Russia, both emerging economies but with different levels of integration and distinct priorities within the global economic system, have shared broad common interests in promoting reform of global economic governance.Although their respective roles and contributions are not identical, both sides agree that the post-World War II governance framework — centered on institutions such as the International Monetary Fund, the World Bank and the World Trade Organization — neither reflects the evolving global economic structure nor effectively addresses challenges such as the widening North-South divide and other pressing transnational economic issues.

After the 2008 international financial crisis, both countries emphasized the need for coordinated global responses. China's rapid economic rebound and large-scale stimulus contributed significantly to global recovery, while Russia, facing sharp commodity-market fluctuations, highlighted financial-stability reforms and supported adjustments to IMF quotas. Together, they upgraded the BRICS mechanism from ministerial talks to a leaders' summit and jointly established the New Development Bank together with three other BRICS countries to fund infrastructure development in emerging economies.

Since 2017, the United States' unilateralism and trade protectionism have posed serious challenges to the global economic governance system. In response, China and Russia have worked together to uphold the multilateral trading system with the WTO at its core, for example by opposing discriminatory trade measures and by backing efforts within the WTO to improve dispute-settlement process and increase the developing-country representation. Both countries have expanded the use of local-currency settlements, advanced cross-border payment mechanisms, and worked to mitigate the disruptive effects of tariff conflicts and supply-chain fragmentation. These joint efforts aim to guide the reform of the global economic governance system toward greater inclusiveness, fairness and effectiveness.

However, while China and Russia cooperate at a high level within the global economic governance system, their collaboration at the regional level exhibits both significant partnership and notable divergence.

In the sphere of cooperation, anchored in strategic mutual trust and aligned economic and geopolitical interests, the two countries have undertaken substantive joint initiatives in regional economic governance, notably across Eurasia.The Shanghai Cooperation Organization stands as the hallmark of this collaborative endeavor. Guided by their concerted leadership, the SCO has established a legal groundwork for regional economic cooperation and defined long-term goals to enable the free movement of goods, capital, services, and technology. It has also developed an integrated system of cooperative mechanisms — the Council of Heads of State, the Council of Heads of Government, ministerial meetings, the Commission of Senior Officials in Charge of Trade and Economic Cooperation, special working groups and the Interbank Consortium.

Beyond that, the SCO has actively promoted trade and investment ties among member states, advanced trade facilitation measures, and propelled multilateral projects in key sectors such as transportation, telecommunications, and energy, thereby bolstering regional infrastructure connectivity. Through its continued enlargement, the SCO's governance concepts and institutional frameworks have expanded from Central Asia into South Asia, West Asia and Eastern Europe, offering a tangible reference for regional governance in other parts of the world.

Nevertheless, disparities persist.Russia's traditional adherence to a "sphere of influence" paradigm in Eurasia drives its support for the Eurasian Economic Union as the principal vehicle for regional economic integration. Wary of China's expanding economic influence, Moscow regards Beijing's growing footprint in Central Asia with caution and adopts a reserved stance toward the alignment between the Belt and Road Initiative and the EAEU, concerned about a potential erosion of its political sway in the region. Within the SCO, Russia has prioritized security cooperation over economic engagement. Even under intensified Western sanctions — which have increased Moscow's interest in the SCO's economic and trade functions — Russia remains hesitant to promote deep trade and investment liberalization or facilitation under the regional framework. Collectively, these factors constrain the prospects for more substantive Sino-Russian collaboration in regional economic governance.

Looking ahead, China and Russia should enhance their multidimensional collaboration in reshaping the global economic governance architecture.

First, the two countries should continue to advance reform of the global governance architecture.They should work in concert to reform the existing international economic and financial institutions, strengthen the role of emerging multilateral frameworks such as the G20 and BRICS, and increase the representation of developing countries in the global system. Furthermore, it is essential to uphold the multilateral trading system with the WTO at its core, promote trade and investment liberalization and facilitation, oppose unilateral protectionism and bloc confrontation, and foster an open global economy.

Second, bilateral cooperation should be deepened in the field of regional governance. Guided by the Shanghai Spirit, both sides should pursue a cooperative approach based on openness, integration, mutual benefit, and shared gains. Efforts should focus on advancing collaboration in the digital economy, green industries, artificial intelligence and technological innovation to elevate regional economic integration. Further work should also promote the alignment of rules, infrastructure connectivity, and financial flows, thereby strengthening the SCO's role in regional governance and contributing an SCO approach to international governance reform.

Third, the two sides should enhance communication and expand collaboration on regional governance issues. They need to intensify dialogue on governance concepts and policy practices to build broader consensus. Practical steps include advancing trade facilitation and liberalization between China and the EAEU, ensuring that the synergy between the BRI and the EAEU yields more substantive outcomes. The coordinated development of the BRI and the Greater Eurasian Partnership should also be actively promoted.

China and Russia have already made significant strides in jointly shaping the evolution of global and regional governance systems. By further aligning their strategic visions and enhancing practical cooperation across governance concepts, initiatives and implementation, the two nations are positioned to play an increasingly substantive role in advancing reform of the global economic governance architecture.

The author is a research fellow at the Institute of Russian, Eastern European and Central Asian Studies at the Chinese Academy of Social Sciences. The author contributed this article to China Watch, a think tank powered by China Daily.

The views do not necessarily reflect those of China Daily.

Contact the editor at editor@chinawatch.cn.