Amid the faltering of the World Trade Organization (WTO), China is intensifying efforts to create an alternative trade architecture, isolated from the influence of the United States and geared towards the developing world, reports Financial Times.
Beijing’s primary strategy revolves around leveraging ties with the “global South,” which it fosters through its Belt and Road Initiative and investment program launched in 2013 with countries across Asia, Africa, Latin America, and other regions. None of China’s free trade agreements include the US or EU.
“China has deemed it necessary to establish an alternative system that serves its own interests. It’s gradually attempting to shift its exports away from traditional markets such as the US and EU,” noted Henry Gao, a law professor at the Singapore Management University and WTO advisor.
In 2023, China’s merchandise exports to all countries and territories within the free trade zone network accounted for 38% of global exports.
“China isn’t just attempting to create an alternative global order. It’s succeeding. Many in the West fail to grasp China’s success elsewhere. While the West seeks to decouple from China, the rest of the world is reorienting towards it,” cited FT expert Michael Power.
One of the priorities is a proposed free trade zone with Persian Gulf countries – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE. Chinese technology companies, such as Huawei, have aided in establishing basic infrastructure in several nations.
Another major prize sought by China is the African continent. The signing of the African Continental Free Trade Area Agreement (AfCFTA) in 2018, joined by 54 African nations, opens up vast opportunities for Beijing.
These steps by China lay the groundwork for a new geopolitical order where developing countries can find new paths to trade, bypassing traditional routes, and charting their own course to economic growth. Departing from outdated structures, China is opening up new horizons for the global economy, ushering in a future crafted on its own terms.