As leaders of the Asia-Pacific Economic Cooperation (APEC) members prepare to meet in Peru this month, Li Yongquan, director of the Eurasian Social Development Research Institute at the Development Research Center of the State Council, says that potential consensus could help ease regional tensions and improve the global economic climate.

Speaking on Diplomacy Talk, Li argues that U.S. attempts to maintain economic dominance are undermining regional cooperation. He points out that Washington's efforts to keep China at the bottom of the global industrial chain make meaningful collaboration increasingly hard.

However, Li sees hope in alternative approaches to cooperation. He points to the Belt and Road Initiative and China's strengthening relationships with Central Asian countries as examples of successful multilateral partnerships.

Following is the transcript of the interview.

Diplomacy Talk: We know that the APEC is the foremost and most influential economic cooperation mechanism in the Asia-Pacific region, encompassing a broad range of fields. This year's APEC Economic Leaders' Meeting will be held in November in Peru. As global geopolitical crises, including the Ukraine crisis and the Palestinian-Israeli conflict, continue to escalate and present spillover risks, what do you believe is the significance of this meeting for regional cooperation?

Li Yongquan: Over the years, leaders and business elites from many countries have used APEC as a platform to discuss issues of general interest that bear on the global economy, especially those in the Asia-Pacific region. Topics such as globalization, trade facilitation, and green development have been central to these discussions. As a result, APEC has fostered mutual understanding between developed and developing countries.

This year's APEC Economic Leaders' Meeting will take place against a backdrop of unprecedented global complexity, with challenges arising from divisions between the West and the East, the North and the South, the developed and developing nations, and among major countries.

Therefore, it will be more than challenging for the heads of state of APEC member countries and for businesses leaders from this region to reach a consensus. Consequently, Asia-Pacific countries will be giving close attention to the meeting in Peru. If some kind of consensus on regional cooperation and global development can be reached, it may help alleviate regional conflicts and contribute to improvement of the global economy.

Diplomacy Talk: China and the U.S. are both APEC members and the world's two largest economies. Their cooperation is essential for the development and prosperity of the Asia-Pacific region. However, the U.S. is employing various tactics to impede China's progress. How will worsening China-U.S. relations affect cooperation in the Asia-Pacific?

Li Yongquan: Over 40 years ago, China focused on engaging with the world in its reform and opening-up, seeking to learn advanced technology and management practices from developed countries. China and the U.S. enjoyed stable relations for decades.

However, problems have emerged recently. The U.S. aims to create obstacles for China and hinder its development. But why? It's not because China has adopted anti-American policies or doesn't want to maintain good ties with the U.S., nor is it due to China's development posing a threat to the U.S. The core issue is that the U.S. does not respect China's sovereignty, especially China's right to development. When it started its reform and opening-up, China was a poor and backward country, but it has been able to achieve its development.

For nearly half a century, the U.S. has been the rulemaker in the process of economic globalization, maximizing its own benefits. For a long time, China followed U.S.-made rules during its opening-up and integration into the global economy. As a result, the U.S. has reaped enormous benefits from China's 40-plus years of reform and opening-up, gaining more than China itself.

Why isn't this acceptable anymore? In the past, China was at the bottom of the global industrial chain, but it is now moving up the value chain. This bears on the interests of the U.S. That's why the U.S. wants to keep China at the lower end of the industrial chain, locking it down as merely a source of cheap labor and a market for U.S. commodities.

Although China's pace of development has yet to threaten the U.S., American elites can no longer tolerate it and have started to pressure China, initiating a trade war against it. If it were just a trade issue, it would not be a big deal, because the Chinese people emphasize achieving mutual benefits and win-win results and are not afraid to make concessions. Yet, this is not merely a matter of compromise. The U.S. claims that China's political system is flawed and should be changed.

China has transformed from an impoverished nation into the world's second-largest economy through its four decades of development. Regardless of this fact, the U.S. lambasts China's system as "wrong." This criticism lacks credibility - even the U.S. itself cannot justify such claims. What, then, drives the U.S. to take this stance? I guess the challenges within its own system have led it to try to shift its own problems onto others.

China has already made significant concessions but it is now not a matter of concessions. The U.S. criticizes China's development path in spite of its proven success in lifting hundreds of millions out of poverty and creating unprecedented prosperity. Even though China has adhered to the rules made by the U.S., the latter is unhappy and is moving to rewrite them.

Why do APEC and BRICS continue to be relevant today? The G7, representative of the West, regards it as its main task to make global economic rules.

As globalization has progressed and emerging economies have grown, the collective economic output of BRICS countries has reached levels comparable to that of developed nations. The U.S. crafted the World Trade Organization's rules, and China, in its pursuit of WTO membership, made numerous concessions. Today, the U.S. believes the existing rules no longer serve its interests and seeks to make new ones, much as it did along with the other G7 members previously. However, emerging economies want a change and seek to participate in shaping global rules and economic governance.

Diplomacy Talk: This year marks the 75th anniversary of diplomatic relations between China and Russia. During his meeting with Russian President Vladimir Putin in May, Chinese President Xi Jinping emphasized that China and Russia should take this anniversary as a new starting point to further align their development strategies and continue to enhance bilateral cooperation. What do you think will be the biggest challenge for future China-Russia cooperation?

Li Yongquan: Throughout 75 years of interactions, China and Russia have forged a model for major countries to get along: one based on mutual respect for each other's development paths, shared benefits, and cultural diversity. What are the biggest threats to China-Russia cooperation? The first is external pressure from third parties, as showcased in sanctions on Russia imposed by the U.S. on the pretext of the Ukraine crisis. The consequent chilling effect has caused major Chinese corporations to hesitate in their business dealings with Russians for fear of secondary sanctions.

The second is instability of the relevant countries. China's increasing global economic integration — including its participation in the Regional Comprehensive Economic Partnership (RCEP) and extensive regional cooperation— makes it more vulnerable to instability in other countries. Any deterioration in Russia's political situation or in Central Asia could significantly impact its numerous joint projects and interests in the region.

Diplomacy Talk: It is notable that China and the U.S. differ sharply in their approaches to handling regional conflicts. The U.S. tends to prioritize a tactic of "bolstering one party and bashing the other," while China adopts a neutral and balanced stance. What accounts for this difference?

Li Yongquan: The U.S. is a nation operating on capitalist principles. The powerful military-industrial complex, which underpins U.S. global hegemony, was established after World War II and relies on funding from the national budget to sustain itself. Only through continuous wars can the U.S. justify sending troops to other regions as a"protector of democracy" or in some other capacity and request funding from the Congress. Consequently, the U.S. strategy is to create conditions for overseas deployment of its forces, which often leads to chaos.

In contrast, Chinese philosophy emphasizes the principle of "Do not do to others what you do not want done to yourself," promoting good neighborliness and national security as guiding values for China's actions.

The U.S.'s "America First" policy prioritizes its own interests in international agreements. Conversely, China upholds the principle of pursuing shared growth through extensive consultation, joint contribution and shared benefits, emphasizing equality and mutual benefit. It hopes that not only its neighboring countries but also the entire world can maintain peace and stability. Ultimately, China aims to secure peaceful development for all.

Diplomacy Talk: Regarding Central Asia, since the first China-Central Asia Summit held last year, China has developed strong relations and established friendly cooperation with the five Central Asian countries. How will their close cooperation impact the order in Central Asia? Will it have any positive spillover effects?

Li Yongquan: First, the stability and security of our neighbors in Central Asia are conducive to China's development. Any instability in this region would affect China's security and development.

Second, as China aspires to connect with other parts of the world, Central Asia — a landlocked region — serves as a bridge and corridor to the outside world, especially since the launch of the Belt and Road Initiative (BRI). Therefore, China places great emphasis on Central Asia, seeking to help these countries achieve stability and development. Central Asia also believes that with the development of the BRI, its unique geopolitical location positions it as a corridor and bridge linking China to Europe and the East to the West. Why did China and Central Asia establish the China-Central Asia mechanism? Because they need a framework that ensures the security of Central Asia, fosters closer cooperation between China and Central Asia, and reinforces Central Asia's role as a bridge and corridor.

Diplomacy Talk: Will a closer China-Central Asia relationship influence China-Russia ties?

Li Yongquan: Since Russia also has close ties with Central Asia, which are even stronger than those between China and Central Asia, it wants to see stability in the region. Notably, the stability of Central Asia requires the joint efforts of China and Russia, which in turn calls for political mutual trust between these two major countries. The development of Central Asia hinges on the relationship between China and Russia in the region. What approach will they adopt: cooperation or competition? In fact, I believe that China and Russia have a consensus in this regard and share a positive outlook on Central Asia's development.

Diplomacy Talk: Central Asia, the birthplace of the BRI and the first stop in its westward extension, is one of the regions with the largest number of cooperation projects under the BRI. Now that the BRI has entered its second decade, how do you envision future cooperation between China and the five Central Asian countries?

Li Yongquan: On Sept. 7, 2013, in a speech at Nazarbayev University in Kazakhstan, President Xi Jinping proposed building a Silk Road Economic Belt. Why there? Because China and Central Asian countries share a close bond, and Central Asia is critical for strengthening China's role in both regional and global economic development and geopolitics. China has established comprehensive strategic partnerships with all Central Asian countries, with a high level of political mutual trust. As a result, China has seen significant progress of its many projects in Central Asia.

The China-Central Asia mechanism has been established to secure a higher quality of their cooperation, which will become stronger in the future. Additionally, it was suggested at the third plenary session of the 20th Central Committee of the Communist Party of China to improve the mechanisms for high-quality cooperation under the BRI.

Overall, China-Central Asia cooperation has a bright future, given the shared aspirations, the necessary conditions and the mechanism. Nevertheless, China should also be aware of potential so-called major power competition in the region.

Diplomacy Talk: China, the U.S. and Russia are the three nations with relatively the greatest national strength. How do you see their future relations evolving?

Li Yongquan: Over the past five decades, liberalism has run rampant. What is liberalism? It is a "winner-takes-all" approach that has ultimately led to monopoly. Few are happy to see this. The technological revolutions have greatly increased productivity in the world, but the distribution of wealth remains uneven, concentrated in the hands of a few wealthy individuals and developed countries. The contradictions between the East and the West, as well as between the North and the South, have not been resolved.

Now, they are being addressed, although we cannot foretell how they will be solved specifically. The Ukraine crisis is just an episode in this process. Predicting how the world will evolve amid these profound changes is difficult. Through its 40-plus years of reform and opening-up, China has found a development path that suits its needs. I am confident that it will continue to prosper.

Will the Russia-U.S. relationship and the China-U.S. relationship improve amid the global challenges? This is only possible if the G7 stops playing with its game of global geopolitics, all major economies participate in setting international rules, and the world develops an open economy based on China's philosophy of mutual benefit and win-win results. Russia is not anti-American, nor is China. However, the world will not be at peace until the U.S. recognizes this reality. The U.S. has the most difficult adjustment to make in the process. We must be prepared for a long-term struggle and enduring competition.

Presenter: Wang Xiaohui

Producer: Li Xiaohua

Production supervisor: Zhang Liying

Editors: Zhang Ruomeng, Zhang Heling, Jiao Yuan, Lyu Yiyi, Xia Fangting

Produced by chinadiplomacy.org.cn