Reshaping globalization

The novel coronavirus pandemic has become a turning point for the international community. The reconstruction of the global industrial chains is inevitable. During the pandemic, if the supply of components from a country or company cannot be ensured, the whole industrial chain, including many participants and links, will be affected. Therefore, to avoid such risks in the future, it is likely there will be a narrowing of the scope of allocation.

Some enterprises with a global layout will be encouraged to reshore. Today, medical products such as face masks and ventilators are essential to protect people's safety. But the scarcity of such personal protective equipment in many countries at the start of the pandemic has exposed the weakness of their manufacturing systems, as they were incapable of producing those supplies relying on domestic manufacturing resources, because their companies had moved their factories overseas to countries with cheaper labor.

In response, countries have highlighted the revitalization of medical care and other low-end and low-profit enterprises related to people's well-being, which can help them regain so-called economic sovereignty and manufacturing independence. The governments of the United States and Japan have earmarked funds to subsidize domestic enterprises abroad to return or relocate. The European Union has called for reducing the bloc's dependence on imports through purchasing from more EU manufacturers.

From the perspective of politics and security, a globally unified market may no longer be the priority for some major economies. Therefore, in the post-pandemic era, regionalism will probably be preferred to globalization. Under the principle of maintaining hegemony, the United States will intensify the implementation of the decoupling policies for less economic and financial reliance on its major strategic competitors. Emerging economies, including China, on the other hand, will strive to promote a new round of globalization. It is thought by some that a two-pronged form of globalization will emerge, centered on China and the US. In this case, countries will increasingly emphasize regional cooperation, avoiding excessive expansion of the industrial chain, which can bring risks to production if there is a crisis.

That means they will pay more attention to the balance between society and the market. Correspondingly, countries will be able to adjust their participation in globalization to prioritize fair competition and develop a better understanding of the world economy where state-owned enterprises and private enterprises coexist.

Globalization has led to a social and growing wealth divisions in some countries, causing resentment among those who feel it has not benefited them. So the balanced progress of society, as well as the mutual benefits of most countries, should be taken into account, instead of focusing on market competition and profits.

It is also necessary to create a fairer playing field with more inclusiveness, which is not dominated by a single country. Some developed countries that advocate free trade are not willing to yield benefits to developing countries. So they question the status of some developing countries to refuse to provide equal treatment, which is a new kind of enforced inequality. Rewriting the international rules requires consensus among all countries and regions and more give than take from the developed countries. Realizing fair competition needs long-term efforts, also negotiations and understanding of participants.

In 1996, only four Chinese enterprises were listed in the Fortune World Top 500. Twenty-three years later, the number reached 129, eight more than the US. And China's State-owned enterprises have demonstrated excellent performance. So some countries in the West have introduced policies to suppress the investment of those companies in them using national security as an excuse.

Although China is putting efforts into supporting the growth of private companies, the country cannot reduce the importance of its State-owned enterprises. It is the same in the West. Some Western State-owned enterprises in industries of electricity, postal services, insurance and oil are also on the list. Whether State-owned or private, these enterprises constitute parts of the world economy. Discriminatory treatment and suppression cannot improve the competitiveness of any country. Moreover, it is not conducive to the development of the world economy, hindering the updating of the current economic order, such as trade rules.

The fundamental law of human development is from isolation to ever greater contact with others. Threatened by infectious diseases, people may look to isolation for self-protection, but this can be only a temporary strategy. However, at the same time, it will shut out others who want to help and will plunge the world into greater danger. For instance, lack of external aid will result in a humanitarian disaster if there is a food crisis; the effects of climate change are expected to cause a devastating blow to humans' survival without solidarity and a concerted response from the international community.

In the context of the pandemic, multilateralism has not disappeared but accelerated in some areas. As a result, no power is likely to dominate globalization again. Graham Allison, the author of Destined for War: Can America and China Escape the Thucydides's Trap? wrote in an article published in Foreign Affairs "unipolarity is over, and with it the illusion that other nations would simply take their assigned place in a US-led international order. For the United States, that will require accepting the reality that there are spheres of influence in the world today－and that not all of them are American spheres". He called on the US to work with other major powers for the good of all.

A pluralistic world is bound to bring various views, demands and policies designed by countries according to their interests. China has grown to be the world's largest consumer market, driven by its vast population, which is the key to reviving global growth and globalization. The globalization of the future will no longer be a simple expansion of scale, but a balanced, fairer and inclusive development for mutual benefits. That calls for enhancing the global governance system.

The author is the vice-president of the China Institutes of Contemporary International Relations. 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.