China sets up $500m fund for developing world

By Bai Tiantian in Beijing and Bai Yunyi in Xiamen Source:Global Times Published: 2017/9/5 20:38:40 Last Updated: 2017/9/6 2:03:56

Greater voice for emerging markets: Xi

Chinese President Xi Jinping arrives for the Dialogue of Emerging Market and Developing Countries as part of the BRICS summit in Xiamen, East China's Fujian Province on Tuesday. Photo: Xinuha

Chinese President Xi Jinping on Tuesday pledged $500 million to support South-South cooperation, calling for a greater representation and voice for emerging markets and developing countries in global economic governance.

"We need to promote a greater representation and voice for emerging markets and developing countries in global economic governance, and foster an international economic order that is fairer and more equitable," Xi said.

Xi made the remarks at the Dialogue of Emerging Market and Developing Countries in the southeastern Chinese city of Xiamen.

In an increasingly interdependent and integrated world, all countries have formed a community of shared interests. Openness, inclusiveness and win-win cooperation are the only viable option, Xi added.

Xi called for emerging markets and developing countries to advocate an open world economy, firmly support a multilateral trading system, oppose protectionism, and rebalance economic globalization to make it more inclusive and beneficial.

Ye Qing, a scholar at the Shanghai Institute for International Studies, said concepts like an open world economy, inclusiveness and win-win cooperation have become China's signature diplomatic ideals.

"China is providing its own solution for continuous global economic growth based on its development experience," Ye told the Global Times.

China's position on an open world economy is in stark contrast to the US' protectionist stance and "America First" agenda.

"Multilateral trade negotiations are stalled, and the implementation of the Paris Agreement on Climate Change is encountering resistance. Some countries have become more inward-looking and less inclined to engage in international development cooperation, and spillovers of their policy adjustment are deepening," Xi said.

Development as cure

Xi said China will contribute $500 million for a South-South cooperation assistance fund to help other developing countries deal with famine, refugees, climate change and public health challenges.

The president has urged emerging markets and developing nations to jointly work for the 2030 Agenda for Sustainable Development.

"Development remains the top priority of emerging markets and developing countries," the president said, adding that these countries should find a sustainable development path highlighted by coordinated economic, social and environmental progress.

"China believes development is the cure to many social and regional problems. Domestically, China has been focusing on poverty alleviation in the past two years. Diplomatically, the Belt and Road initiative stems from the same idea of spurring development and growth in countries along the routes," Ye said.

The Chinese president also called for stronger South-South cooperation. "By deepening practical cooperation and tapping into our complementary advantages, we can multiply the impact," Xi told leaders from Brazil, Russia, India and South Africa, as well as Egypt, Guinea, Mexico, Tajikistan and Thailand.

"The purpose of inviting representative developing countries from different regions to this dialogue is to foster a broad network to develop partnerships and build a community of common development and a shared future," Xi said.

Chen Fengying, an expert at the China Institutes of Contemporary International Relations, said involving more countries in the BRICS bloc would help alleviate internal conflicts.

"A permanent expansion for BRICS is quite complicated and sparks conflicts. The best solution for the moment would be to invite other nations to temporarily attend the summit. This would help foster a stimulus mechanism and explore ways to expand in the future," Chen said.

Newspaper headline: China sets up fund for developing world

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