Sun Jisheng is Vice President of China Foreign Affairs University, a Professor of international studies, and Secretary General of the Chinese Association of International Relations. The views expressed in this essay are her own and do not reflect the positions of the organizations with which she is affiliated.

Globalization mainly emphasizes the free flow of goods, resources, information, technology, and people worldwide, as well as the integration of the world’s economies, cultures, and societies, with the entire globe operating as one entity. Throughout history, globalization has experienced several periods with different root causes and yielded different results. Generally speaking, globalization has greatly improved the progress and development of mankind in many aspects. However, in recent years, with the changing landscape of world politics, some countries’ attitudes and perceptions toward globalization have been changing, leading to doubt and sometimes even resistance, which has also caused the rise of protectionism, isolationism, anti-globalization, and deglobalization. Today, globalization is facing severe challenges. Since the world has become increasingly interdependent and interconnected, globalization will continue to be the general trend and should not be stopped or reversed deliberately. Navigating the challenges and opportunities of globalization, the world should continue to build consensus and take collective measures to promote and advance globalization. Different ideas and measures from various countries should be embraced to make globalization more inclusive, equitable, and sustainable, which can help make the world more pluralistic and sustainable. As the world’s second-largest economy with global influence, China has been strongly supporting and promoting globalization through its own efforts, which will also positively influence the future of globalization.

The routes of the Belt and Road Initiative, a central pillar of trade and globalization with Chinese characteristics

Globalization as a Driver of Human Progress

Globalization can be traced back to the Age of Exploration in the fifteenth century, when Europeans began their search for new lands and territories. This exploration helped countries such as Spain, Portugal, and Britain gain more advantages by opening trade routes and markets in the Americas, Asia, and Africa. This not only spurred economic growth in these areas but also led to the early rise of global trade and commerce, as well as the spread of cultural ideas and practices.

In the eighteenth and nineteenth centuries, during the Industrial Revolution, globalization continued to expand alongside technological advancements and increased production. The invention and application of machinery, such as steam engines and power looms, allowed for mass production on an unprecedented scale, not only increasing the output of goods but also reducing their costs, making them more accessible and competitive in global markets. The construction of railways and steamships greatly enhanced the speed and capacity of transporting goods and people. Information could be disseminated more quickly, facilitating global trade, cultural exchange, and many other aspects. This wave of globalization also witnessed the rise of imperialism and colonialism, along with the dominance of European powers such as the UK over other parts of the world.

In the twentieth century, globalization experienced a significant shift with the beginning of World War II and the subsequent Cold War between the United States and the Soviet Union. Global politics and economics were largely defined by the competition between these two superpowers, and the world was divided into two major blocs, with many countries aligning with one side or the other. The end of the Cold War in 1991 brought about a more conducive international political environment for globalization, and globalization entered a new era of real globalization worldwide. The strict ideological confrontations eased, allowing for greater economic cooperation and exchange. Countries that were previously isolated or constrained by Cold War dynamics were able to open up and integrate into the global economy, becoming more accessible to foreign businesses. This led to increased competition and the spread of global brands and business models. The focus shifted from military competition to economic cooperation and diplomatic engagement.

International organizations and institutions gained more prominence and played a greater role in promoting global economic integration. The World Trade Organization (WTO), for example, saw an increase in member countries and an expansion of its mandate to facilitate trade liberalization. The internet became a powerful tool for connecting people and businesses worldwide, enabling seamless cross-border transactions and information exchange. Meanwhile, the United States became the superpower of the world and a key player in globalization. With the opening of China, particularly after it joined the WTO—along with the rapid development of other emerging economies—foreign investment, production, and global markets expanded significantly. Today, driven by the development of new technologies, such as the Internet, digital communications, and AI, the world has become a true global village, further facilitating global connections and collaborations. Globalization continues to shape the world in profound ways.

Throughout the history of globalization, it is evident that globalization has greatly promoted progress and development in several ways.

First, it has significantly advanced commerce and trade, greatly enhancing social productivity. Over the years, globalization has broken down borders between countries and continents, allowing goods, capital, investment, information, resources, and people to flow worldwide. The IMF particularly emphasizes globalization as the increasing integration of economies around the world, mainly through trade and financial flows. Countries need both cooperation and division of labor depending on their position in the industrial, supply, and value chains. Relocation of production to areas with cheaper labor became a prominent feature of globalization. Nations began to specialize in the production of certain goods based on their comparative advantages, with some focusing on manufacturing and others specializing in raw material extraction or agricultural production. This specialization improved efficiency and productivity, created interdependencies among countries, and strengthened global economic ties.

For example, an Apple cellphone, from its design to its final sale on the international market, involves multiple countries: design in the United States, component production in Japan and South Korea, assembly in China and Vietnam, and distribution across the globe. Such a global process also created more opportunities for different countries and international companies. According to a study by the McKinsey Global Institute, countries with more connections to global flows of trade, finance, people, and data have seen the rise of their growth up to 40 percent more than the less connected countries. International companies have been able to access resources, labor, and markets around the world, leading to lower costs and increased productivity.

Second, globalization has helped to improve the overall wellbeing of mankind. Globalization not only influences countries’ connections to the rest of the world but also affects individuals, promoting the progress of mankind as a whole. Globalization spurred urbanization, as large numbers of people moved from rural areas to cities to work in factories, creating concentrated labor markets, and consumer bases. It increased the possibility for people to settle in localities or states other than their native ones to raise their standard of living. Additionally, with the spread of information, norms, and ideas, the world can set general standards for countries to follow and reach. For instance, since the beginning of the twenty-first century, the international community has been implementing the Millennium Development Goals and the 2030 Sustainable Development Agenda proposed by the United Nations, which have helped lift 1.1 billion people out of poverty, provided 1.9 billion people with access to safe drinking water, and connected 3.5 billion people to the Internet. The world is expected to eliminate poverty completely by 2030.

Meanwhile, we have also seen the rise of a new global middle class. China and India, as the two countries with the largest populations, have experienced rapid economic development and poverty reduction as a result of globalization, providing millions of people with better access to education, healthcare, and basic amenities. China has completed the daunting task of poverty alleviation, lifting over 800 million people out of poverty and establishing the largest social security system in the world. Globally, the number of people living in poverty has significantly decreased. For example, thanks to globalization in the 1990s, poverty was dramatically reduced, and the gap between rich and poor countries began to close for the first time since the Industrial Revolution. The development of the internet and telecommunications has enabled real-time communication and the sharing of research findings, leading to breakthroughs in areas such as medicine, energy, and transportation. These advances have resulted in better healthcare, more sustainable energy solutions, and faster, more efficient transportation systems that benefit people worldwide.

Third, globalization has greatly promoted the flow of people and enhanced mutual understanding between different countries and cultures. With the development of transportation and information technology, such as the Internet, globalization has encouraged people to move across borders to wider areas and regions, bringing together individuals from different cultures, either physically or virtually, and promoting cross-cultural understanding and exchange. People, regardless of geographic location, have more opportunities to engage with others, communicate, and interact with people from different countries and cultures, exposing them to diverse cultures, languages, and ideas. It has also led to the sharing of art, music, and literature across borders, enriching the cultural experiences of people everywhere. Activities such as international music and film festivals showcase works from various countries, fostering a global cultural community. Such engagement greatly promotes mutual awareness and understanding between different cultures, traditions, and perspectives, increases migration and diversity within many countries, and fosters a more interconnected and tolerant global community.

Fourth, globalization has promoted the development of technology and made technology and knowledge more accessible to the general public. Technology has played a crucial role in human progress. In fact, globalization is also a natural outcome of scientific and technological progress. It further promoted the spread and development of technology and facilitated the sharing and dissemination of knowledge and innovations. Scientists and researchers from different countries can collaborate more easily, accelerating the pace of technological progress. For instance, after the end of the Cold War, the relaxation of geopolitical tensions allowed for greater sharing and dissemination of technological knowledge across borders, leading to rapid improvements in information technology, which, in turn, revolutionized global communication and business operations. Whether it’s the invention of the steam engine, computer, the Internet, or artificial intelligence, the spread of these technologies has been global and influential. Without globalization, the spread of these technologies would have been impossible.

Fifth, globalization can help people better address global issues and improve global governance. Globalization has encouraged international cooperation and the establishment of global institutions to tackle common challenges such as climate change, terrorism, and pandemics. Through these collaborative efforts, countries can work together to find solutions that benefit the entire world. The Paris Agreement on climate change is a prime example of global cooperation to address a pressing environmental issue. With the help of global norms, rules, and regulations, the international community can better cooperate in many areas that threaten the security and livelihood of mankind.

 

Facing Severe Challenges

In recent years, globalization has faced severe challenges, and the reasons are complex, requiring further reflection to better promote globalization in the future.

First, problems have emerged along with globalization. Both the past and ongoing rounds of globalization have been mainly led by Western developed countries, and the international order formed after World War II primarily follows economic liberalism and is essentially Western-centric. In recent years, new problems have become increasingly prominent along with globalization. A very prominent one is inequality.

Domestically, globalization has led to an uneven distribution of benefits, with some individuals and regions prospering while others have been left behind. In many countries, workers in traditional industries have faced job losses and wage stagnation as manufacturing has shifted to lower-cost countries and regions, causing further division between elites and the grassroots. This has created social unrest and political instability in many places, leading to the rise of populism in many countries.

Internationally, globalization has not benefited all countries equally, leaving some marginalized. There are also cases where some developing countries are producing for the international market, making them more vulnerable and sensitive to changes in the global economy. Meanwhile, the pursuit of capital manipulation has become a priority, with the goal of maximizing worldwide profit becoming the most important for many individuals and companies. This is also one of the reasons for the 2008 international financial crisis. Globalization also brings a variety of challenges, such as those related to climate change, terrorism, war, and the spread of deadly diseases and epidemics. These issues have also influenced people’s attitudes and perceptions towards globalization. The world has begun to experience greater fragmentation, social division, uncertainty, and instability.

Second, the COVID-19 pandemic has dealt a severe blow to globalization. In recent years, the world has been disrupted by different kinds of viruses. The rapid movement of people across borders allows diseases to spread more quickly and widely, as seen with the COVID-19 pandemic, which had severe implications for global economies and supply chains. When the COVID-19 pandemic broke out, its influence soon reached almost the entire globe, not only threatening human health and life but also damaging the world economy. Many industries paused suddenly, and supply chains and industrial chains were disrupted. Countries worldwide experienced economic contractions. Trade and investment declined as businesses struggled and consumer spending dropped. Tourism, a significant contributor to many economies, came to a near standstill, affecting countries that rely heavily on international tourists. International travel was severely restricted, affecting not only tourism but also business travel and international collaboration. The movement of labor, especially skilled workers, was also restricted, affecting industries that relied on foreign workers. More importantly, the pandemic exposed the weaknesses in global cooperation. The difficulties that different countries experienced during the COVID-19 pandemic have forced them to adapt and reevaluate their strategies in an increasingly interconnected world. Many countries began to rethink their industries and economic security, which will influence the ongoing operation of globalization in the long run.

Third, globalization is influenced by geopolitical competition and has been increasingly politicized. In recent years, with the rapid development of new emerging economies such as China, India, and Brazil, the distribution of power has changed significantly, and the gap between developed countries and the developing world has become increasingly narrow. Globalization is no longer synonymous with Americanization. This has influenced self-perception and mutual perceptions and attitudes among different countries. Developed countries have begun to show more anxiety and even concern towards the newly emerging countries. They have taken active measures, such as setting trade barriers or raising tariffs, to contain the development of certain industries in countries like China. Protectionist policies and even trade wars have begun to appear, disrupting global supply chains and trade flows.

The ongoing trade tensions between China and the United States have had negative impacts not only on the two countries but also on businesses and economies worldwide. In May 2024, U.S. President Joe Biden’s administration quadrupled U.S. tariffs on Chinese electric vehicles (EVs) to 100 percent, doubled the tariff on solar cells (to 50 percent), and more than tripled the tariff on lithium-ion EV batteries (to 25 percent). Former Prime Minister of Sweden Carl Bildt pointed out that trade barriers, tariffs, and other tools of protectionism are becoming more prominent across the world and are often used in the name of economic security, which actually prevents cheaper, often better, green technologies from reaching consumers.

Globalization has been politicized and even used as a tool for major power competition, being changed or even reversed deliberately. Carl Bildt also warned that a very upsetting and dangerous trend of protectionist measures is that major powers are disintegrating the international economic order, which had previously produced unprecedented benefits through the integration of trade and globalization. A series of measures, such as economic security, de-risking, and different kinds of subsidies to support domestic industries, are influencing the operation of globalization. According to research conducted by the IMF and World Bank, the deepening of economic separation will reduce global GDP by 5 to 7 percent, with the greatest impact on underdeveloped countries.

Fourth, new emerging global issues also challenge globalization. Technology has been a driving force of globalization, and the development of technology has brought the world into the digital era. However, digital resources and benefits are not accessible to all people. The gap between those with access to advanced technology and those without is further widening economic and social disparities. The digital divide can have significant implications for education, employment, and social inclusion. Environmental concerns pose another significant threat. The increased movement of goods and people associated with globalization has contributed to higher carbon emissions and environmental degradation. Issues such as climate change require global cooperation, but achieving consensus and effective action among all nations has proven difficult. Political instability, regional conflicts, and political upheavals can lead to disruptions in energy supplies or the displacement of populations, affecting economic activities on a global scale. The Ukraine crisis and the Gaza crisis not only threaten regional and global security but also influence the supply of energy, and the flow of investment and capital. The Houthi armed forces frequently attacked ships related to Israel in the Red Sea waters to show their support for Palestine. Shipping companies have had to change their routes to avoid the area, leading to a sharp increase in ocean shipping costs and delays of up to several weeks. This situation has led some of the world’s largest shipping and oil companies to suspend transportation through the Red Sea. In addition, a large amount of trade between Europe, America, Asia, and the Middle East passes through the Red Sea waters. Its obstruction may impact the global supply chain, push up inflation again, and affect the prospects of global economic recovery.

 

Globalization, the Chinese Way

Although people’s attitudes and perceptions toward globalization are changing and globalization has been facing challenges, China has repeatedly stated that it has benefited greatly from the current international order and globalization and is willing to continue making its own contributions to promote globalization in its own way.

First, to establish appropriate ideas and attitudes toward globalization. Regarding globalization, one thing that needs to be clear is that problems are not caused by globalization per se but by the concrete measures taken during the process. The world still needs to support globalization, inject new ideas, and take proactive measures to better address these problems. China has repeatedly emphasized its determination to support globalization and has put forward new ideas, policies, and initiatives to promote it.

In 2023, China’s Central Conference on Foreign Affairs emphasized that in response to a series of major issues and challenges facing the world today, China advocates an equal and orderly multipolarization of the world and universally beneficial economic globalization, resolutely opposes anti-globalization and pan-securitization, opposes all forms of unilateralism and protectionism, firmly promotes trade and investment liberalization and facilitation, solves structural problems that hinder the healthy development of the world economy, and promotes economic globalization toward a more open, inclusive, universal, and balanced direction. Openness, inclusiveness, balance, and benefit for all are the important ideas when it comes to pushing this round of globalization forward.

Second, to establish new institutions to promote globalization. Besides the right ideas to promote globalization, an important aspect is to build different kinds of institutions to encourage and support the flow of goods, investment, technology, and people worldwide, to create stable expectations, and turn ideas into reality. China has made great efforts to promote institutional opening up. For the past four decades, China’s opening up has been more about the opening up of goods and other physical factors. In 2018, China’s Central Economic Work Conference emphasized the shift to institutional opening up, which means expanding the institutional liberalization of rules, regulations, management, and standards, promoting the liberalization and facilitation of trade and investment, reducing institutional barriers to the connection between the international market and the domestic market, promoting the synergy and integration of domestic and foreign institutions, and constructing a unified big market.

The report of the 20th National Congress further emphasized “steady institutional opening up such as rules, regulations, management, and standards.” Institutional opening up was written into the report of the Party Congress for the first time, showing the determination and will of the party and the government and marking a new stage of China’s opening up to the outside world. The Third Plenary Session of the 20th Central Committee of the Communist Party of China convened in July 2024 once again emphasized institutional opening up, stating that it is necessary to improve the system and mechanism for high-level opening up to the outside world. It was emphasized that opening up is a distinct symbol of Chinese modernization, and opening up to the outside world is a basic national policy. The ability to open up should be enhanced, and a new system of a more open economy should be constructed. Such institutional liberalization process can further make China’s efforts more systematic and comprehensive, and is also helpful to the world in terms of stabilizing expectations from the Chinese system.

In practice, China has created a series of new mechanisms and platforms to strengthen its interaction with the world. In 2018, China held its first Import Expo, aiming to expand imports from other countries and better share the domestic market with them. Subsequently, in 2019, the Beijing International Fair for Trade in Services was renamed the China International Fair for Trade in Services. China also held the China International Consumer Products Expo starting in 2021. So far, these three expos, along with the Canton Fair, have become the four major expos organized by China. The “Report on the Development of China’s Exhibition Economy 2023” released by the China Council for the Promotion of International Trade shows that in 2023, a total of 3,923 economic and trade exhibitions were held in China, all of which have built important platforms for global enterprises to “invest in China.” Besides, China is always a major advocate for open trade. It has actively participated in and promoted regional and global trade agreements. China has taken steps to further open up its own economy, reducing trade barriers and expanding market access for foreign companies. All these actions have sent a clear and positive signal to the world about the importance of open and fair trade. Additionally, China has established free trade zones with a number of countries to promote globalization.

Third, to use the Belt and Road Initiative (BRI) as an important platform and framework to promote open, inclusive, and equitable globalization. During more than a decade since the BRI was launched, its ideas, policies, and practices have constantly developed and evolved. Besides matching the traditional main themes of globalization, the BRI has also added new content for the new round of globalization in terms of equality, openness, inclusiveness, and development.

Regarding equality, according to the BRI, all countries, regardless of their needs, are equal whether they are rich or poor, strong or weak. All countries can contribute and benefit from the platform equally. The BRI serves as an important public good and platform for countries to cooperate following the principle of planning together, building together, and benefiting together. It encourages partner countries to combine comparative advantages, narrow development gaps, accelerate regional integration, and achieve common development and prosperity.

Regarding openness, when the BRI was first proposed, it was often described as involving “countries along the BRI…” and suggested five general routes. However, these do not imply fixed notions about routes and participating partners. The suggested pathways are more broad organizing notions, around which a series of bilateral and multilateral cooperative activities with a variety of partners may be oriented. In fact, any country that wishes to join is welcome. The BRI is an open mechanism. It offers more space for China to consolidate established cooperative relations and opens opportunities for forming new ones. Other countries wishing to join can also launch new cooperation under the BRI framework. In this sense, it could lead to an integration of Chinese-style or even Asian-style approaches, which emphasize connectivity and strategic synergy of nation-states.

As far as inclusiveness goes, being inclusive and tolerant is a typical feature of Chinese culture. Chinese culture always emphasizes harmony without uniformity, accepting the existence of differences as a natural state. Different elements can come together to form a harmonious whole. As the current round of globalization is mainly led by Western ideas and values, producing an exclusive order of “us” and “them,” the BRI can serve as a good supplement and innovation. Countries with different social and political systems, different religions, and different civilizations can all join; the same applies to different regional and international organizations. Regarding the way of cooperation, there are no fixed standards or rules. Cooperation can be very diverse, flexible, and inclusive, taking care of the interests of all parties.

In terms of development, the “Silk Road Spirit” is described as a new way to promote world peace and development. No country has paid as much attention to development over the past four decades as China. The BRI can serve as a mechanism through which other countries and regions may benefit from China’s development through win-win cooperation. At the 2016 G20 Hangzhou Summit, development was for the first time placed on the agenda of global governance. This represents a unique way for China to improve global governance. According to the World Bank, about 19 countries along the Belt and Road are middle- and low-income countries, with a total population of 2.4 billion, accounting for 82 percent of the total population living in countries that host the infrastructure megaproject. If the BRI could help promote the development of these countries and elevate them to middle-income status, the total development landscape of the world would change. This would be an achievement that the current round of globalization could not attain.

Fourth, China has been trying to make its contribution to global governance. One critique of globalization is that it has caused global problems, and global governance is facing a daunting task. In recent years, China has attached great importance to global governance. China has participated in international organizations, committed to multilateralism, and helped strengthen the global governance system. China has become a significant contributor to many international organizations, the second largest contributor to the United Nations, UNESCO, WTO, and others. It has also dispatched the largest number of peacekeepers among the permanent members of the Security Council. China emphasizes a global governance vision featuring extensive consultation, joint contribution, and shared benefits, and promotes the reform and development of the global governance system toward a more just and reasonable direction. Over the past years, China has played a crucial role in addressing poverty alleviation, climate change, financial stability, and cyberspace governance under the guidance of the idea of building a global community with a shared future. For instance, regarding environmental protection, China has invested heavily in renewable energy, becoming the world’s largest producer and installer of solar and wind power, and making significant contributions to the global fight against climate change, energy transformation, and the goal of sustainable development.

 

Inclusive Globalization?

Globalization has had a positive impact on the progress and development of humankind. It has increased economic growth, cultural exchange, and mutual understanding, and has also led to greater access to and development of technology and knowledge. However, globalization is now at a critical point, facing various challenges. Although these challenges do not necessarily mean that globalization will disappear or go backward, new ideas and measures need to be added to inject new vitality and vigor to renew globalization. China has been supporting globalization from the perspectives of ideas, institution-building, and institutional opening up, as well as global governance.

“Chiglobalization” was coined to describe the China-initiated globalization, which emphasizes a process of China-led global search for and global enlightenment through an alternative mode of life for humanity, based on but extending beyond the Eurocentric or Anglo/American-centric models. Different countries have different traditions, cultures, ideas, and practices; the Chinese ideas, policies, initiatives, and practices will naturally reflect a Chinese style. The same applies to other countries, such as India and Brazil. They also have their own perspectives on globalization and their own policies towards it, which should also be embraced. Only in this way can we make globalization more inclusive, pluralistic, and sustainable, and only in this way can we further promote globalization to become truly global, benefiting the welfare and future of the entire world.

Back to Table of Contents