The Watcher: Globalization

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I’m Robert Lawrence Kuhn and here’s what I’m watching… The United States and China, switching roles on globalization.

At the 2017 World Economic Forum in Davos, the global elite seemed in a state of collective denial — networking deals and dining on caviar while lamenting the state of the poor.

Some say that globalization is more important than ever. Others that Davos is like the nostalgic reunion of an Aging Rock Band.

Globalization has lost its way and its steam – witness President Trump, Brexit, nationalism in ascendance. The 2017 Davos star, certainly, was China’s President Xi Jinping, with his ringing call for renewed globalization.

But why is China, once isolated, now promoting globalization so vigorously? What are the implications as China becomes the new champion of an open world? But how open is China itself?

China depends more on a globalized world than does any other major country. China’s economy is especially vulnerable to anti-globalization pressures.

In this volatile environment, President Xi offers four fundamental principles: innovation-driven growth, win-win cooperation, fair and equitable governance, and inclusive development. Good vision; strong words.

But how do they translate into actionable policies and robust economics? Moreover, how can China champion globalization without making changes itself?

To exemplify leadership, China should open more of its domestic markets – in practical reality as well as by legal statute. When doing business in China, foreign companies should feel more welcome, not less. For China in a New Era, globalization means seeking opportunities and facing challenges.

I’m Keeping Watch. I’m Robert Lawrence Kuhn.

(Dr. Robert Lawrence Kuhn is a CGTN anchor, a public intellectual, international corporate strategist and investment banker.)