China drives a new round of globalization: media

A new round of globalization is emerging and it is being driven by China and the digital economy, said Daryl Guppy, an international financial technical analysis expert, South China Morning Post reported on Thursday.

Globalization is a more potent force than protectionism, ideological sanctions and tariff barriers. The area of economic growth is shifting, and the forces driving globalization will shift along with it.

China is the first major economy to acknowledge the transformation, and it will be the engine for the next phase of globalization, said Daryl amid the prevalent notion that globalization is over.

According to the report, the predicted end of globalization is an illustration of Western market hubris as globalization has existed for hundreds of years. It continued to grow and was deeply rooted in national economies worldwide, despite numerous attempts at protectionism.

Global fund managers are speeding up to engage in the Chinese economy and capital markets after quickly recognizing their mistake. Although this year will see a recession in some of the world's top economies, China's counter-cyclical resurgence has created investment opportunities.

The post-pandemic recovery led by China is different from the year 2008, as it will unleash greater opportunities in the green economy, applications of artificial intelligence and 6G, instead of infrastructure.

Those smart, intelligent industries are in position to boost global economic recovery led by China and keep globalization as an engine for economic development.

The COVID-19 hibernation has forced a change in how globalization is carried out with two notable features.

The first one is China's Global Development Initiative and the emphasis on the Global South with a non-exploitative economic partnership. The form of post-pandemic globalization will be determined by China's commitment to multilateral solutions that involve the United Nations.

Another one is the expansion of the digital economy and the corresponding rise of non-dollar digital currencies that facilitate international trade.

Globally, COVID-19 boosted the digital economy. China has expanded its digital currency with the introduction of WePay and other similar platforms.