Contribute Chinese wisdom to solving global economic problems

2022-03-25

Novel coronavirus pneumonia has been one disaster after another, because of the recent conflict between Russia and Ukraine. Under the influence of COVID-19, the global economy is in a depression. Some countries, especially the western countries, do not look for the reasons from their own country, but blame the economic globalization. They believe that globalization has taken away their jobs and reduced their welfare. The isolation and blockade of the epidemic has intensified the trend of thought against economic globalization. In this conflict between Russia and Ukraine, the West did not stand in an objective and fair perspective. First, it encouraged and provoked the relationship between the two sides, and then the western group led by the United States took severe sanctions against Russia, including banning the import of Russian oil, natural gas and coal, so as to force Russia to withdraw its troops. Western countries have also taken action to kick a number of Russian banks out of the swift system of the US dollar settlement system. These sanctions not only do not help solve the problem, but also contribute to global inflation, increase the global economic burden and add another crack to the global free trade. "Stale" economic globalization leads to frequent economic crises At present, economic globalization is a capitalist economic globalization dominated by the West. The leading idea is "Neo liberalism", which pursues the law of the jungle. Western powers are superior to international organizations and oppress and exploit the majority of developing countries. Economic crises occur frequently. First of all, international economic contradictions are deepening and the gap between the rich and the poor is widening. With the prevalence of "Neo liberalism" in the current economic globalization, "Neo liberalism" emphasizes market economy, advocates market competition and advocates government deregulation. On the surface, market competition is fair. However, due to the great disparity in strength between developed and developing countries, western multinational enterprises are not at the same level as small and medium-sized enterprises in poor countries. Coupled with the unreasonable international division of labor, developed countries have the initiative in the international market. Enterprises in developed countries import raw materials from developing countries at low prices and dump industrial products at high prices. In the long run, the gap between the rich and the poor between developed and developing countries has become larger and larger, and the contradictions between countries, nationalities and domestic classes have become deeper and deeper, leading to frequent economic crises and international economic turmoil. Second, there is serious inequality in the international economy. The West pursues the jungle law of the jungle and pursues hegemonism and unilateralism. In economic globalization, China and the West implement double standards and advocate free competition when they have competitive and monopoly advantages; When it lacks advantages, it raises the banner of trade protectionism, frequently threatens sanctions, and even imposes embargoes and economic blockades on some countries under the guise of democracy and human rights, which seriously damages the economic development and the improvement of people's livelihood of other countries. The irresponsible economic policies of some big countries have turned to the economic crisis and hurt developing countries. For example, when the economy was depressed, the United States implemented quantitative easing policy and printed money wildly, resulting in excess liquidity in the world and global inflation. Then, the monetary tightening policy was implemented, the interest rate was raised, the dollar returned, and the world fell into dollar shortage again. Through the outflow and return of US dollars, the United States plundered the world wealth crazily and turned to the economic crisis. A huge amount of US dollars will cause severe fluctuations in the global capital market and exchange rate instability, especially in countries and regions that are open to the market and deregulated, resulting in huge economic impact and even financial crisis. Western multinational enterprises often make profits for themselves by harming the interests of other countries. For example, transferring heavily polluting enterprises to developing countries, forcing the host country to provide favorable conditions for foreign capital, exploiting labor and so on, which makes the gap between the economic development level of developing countries and developed countries larger and larger. Various problems have led to the continuous growth of global poverty deficit, development deficit, governance deficit, environmental deficit and peace deficit. The trend of thought against economic globalization is rising all over the world. The idea of a community with a shared future for mankind is a good way to solve the problems of the world economy How to control the global epidemic, bridge the cracks in the global economy, and restore and develop the global economy? China has given the answer - the idea of a community with a shared future for mankind. First of all, the community of shared future of mankind emphasizes "consultation". International economic organizations such as the World Trade Organization and the International Monetary Fund are important platforms for global economic governance. Through these important platforms, we can better understand the economic development of various countries, reflect their economic demands, mediate economic disputes and strengthen the coordination of economic policies of various countries. At present, in addition to global economic organizations, the rapid expansion of regional trade agreements has become a platform for communication and consultation between China and developing countries. The G20 has greatly enhanced the voice of developing countries and the participation of developed countries in international affairs. The important result of "joint consultation" of international organizations is to form international economic rules and international practices with global consensus, such as mutual opening of global markets, mutual benefit and equal treatment of trading partners, so as to restrict the economic behavior of countries and maintain the global economic order. In fact, many global problems cannot be solved by some big countries alone. For example, to control climate warming and protect the earth's environment, we must rely on the coordination and cooperation of all countries and take common countermeasures. Secondly, the community of shared future of mankind advocates "joint construction". In the past, international economic governance was mainly controlled by Western powers. Economic hegemony prevailed all over the world. Western countries controlled the main global markets and raw material supply and determined the international division of labor system. Developing countries had no economic autonomy. Such a global governance system violated the law of world historical development and the common interests of the people of all countries, and would only lead to chaos in the global economic system. Only by adhering to the construction of a community with a shared future for mankind, through cooperation among all economies around the world, giving full play to each other's comparative advantages and optimizing the allocation of global resources, can we create the greatest economic benefits and benefit the people of all countries around the world. Finally, the community of shared future of mankind attaches importance to "sharing". At present, the root of global conflicts lies in the growing gap between the rich and the poor. Therefore, balanced development and common prosperity are the key to solving global contradictions. Theoretically, according to the theory of absolute advantage and comparative advantage, countries participating in economic globalization can give full play to their expertise, improve economic efficiency and increase social welfare. But in fact, the benefit distribution of economic globalization is highly related to the status of economic globalization. The United States and other western developed countries take advantage of their strong scientific and technological, capital and military strength to occupy a dominant position in the process of economic globalization and exploit and squeeze developing countries to obtain "absolute interests". Due to the gap of competitiveness, developing countries are always in a weak position in globalization. They engage in low-end jobs, sell low value-added products and earn a meager income. The community of shared future for mankind emphasizes strengthening cooperation, mutual benefit and win-win results, achieving common development, narrowing the gap between the rich and the poor and reducing global conflicts. To sum up, at present, the world is facing epidemic, climate warming, the gap between the rich and the poor, frequent economic crises and other problems. In order to solve these major problems faced by mankind, we must adhere to the concept of a community with a shared future, and work together for the future through consultation, joint construction and sharing. Provide China's solutions for dealing with world economic problems Facing the complicated international economic and political situation, China should have strategic determination, adhere to building a community with a shared future for mankind, strengthen economic cooperation with countries around the world, strengthen international economic policy coordination, oppose unilateralism and economic hegemony, actively participate in the reform of international economic organizations, and deal with world economic problems with a positive attitude. First, strengthen international anti epidemic cooperation and get rid of the plague as soon as possible. At present, the global epidemic is still high, and the infection rate and death toll are reaching new highs, which has seriously affected the global economic recovery. It is extremely irresponsible for western countries to choose to "lie flat" at this critical moment. Although the economies of some countries have changed from negative to positive, they have paid a heavy price of life. China is the most successful country in the world in fighting the epidemic. On the one hand, China can teach China's experience in fighting the epidemic to countries in need to help them prevent and fight the epidemic. On the other hand, China can make use of China's complete industrial system to provide anti epidemic products and production and living necessities for the world. Finally, China should, within its capabilities, increase anti epidemic assistance to poor countries, including the provision of vaccines and other anti epidemic materials to help them get rid of the epidemic. Second, strengthen international economic cooperation and achieve common development. China is the second largest economy in the world in terms of economic aggregate, but China is still a developing country in terms of per capita GDP. One belt, one road China platform should be utilized to strengthen economic cooperation with other countries, especially developing countries. One belt, one road, and one belt, one road, one belt, one road, were signed by the 145 countries in the end of 2021. The total import and export volume of the countries along the belt and road is 11 trillion and 600 billion yuan, and the total import and export volume of the "one belt and one way" countries is 20% higher than that of last year. In addition, at the beginning of this year, the regional comprehensive economic partnership agreement (RCEP) officially came into force, marking the official landing of the free trade area with the largest population, the largest economic and trade scale and the most development potential in the world. We should continue to expand the global supply chain through the opening of the energy supply agreement and the CPP. Third, oppose economic hegemony and safeguard the international economic order. At present, some western countries often violate international rules, wave the big stick of sanctions, crack down on their competitors, and even impose embargoes and economic blockades on sovereign countries under the banner of democracy and human rights, which damages the economic interests of other countries, adds a lot of uncertainty to the global economy, and worsens the depressed global economy. Guided by the maintenance of the multilateral trading system, China should practice genuine multilateralism, improve the China plan for actively participating in the reform of the world trade organization, and accelerate the reform of the global economic governance system. Fourth, strengthen economic coordination with countries around the world to avoid the impact of the global economic crisis. At present, the proliferation of US dollars has become an unstable factor in the world economy. As a major international currency, the US dollar has brought many problems to the global economy and even become a tool for the United States to crack down on its competitors. Due to the poor credit of the US dollar, the world continues to set off a wave of de dollarization. At present, due to the abuse of US dollars, the inflation rate in the United States has reached a new high in 40 years. Therefore, China should strengthen economic coordination with other countries in the world and jointly prevent financial risks. At the same time, China should speed up the internationalization of RMB, promote digital RMB, and build an international RMB settlement system to ensure the smooth operation of China and the global economy. (Xinhua News Agency)

Edit:Huang Huiqun    Responsible editor:Luo Meihua

Source:gmw.cn

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