The Global Governance Initiative is more than high-level diplomatic discourse, according to Li Qing, president of Guangdong Institute for International Strategies. The initiative, first proposed by Chinese President Xi Jinping in September, aims to boost international cooperation on issues like peace, sustainable development and fairer global governance. And Li says it will bring direct, tangible benefits for ordinary people.

In this episode of "Diplomacy Talk," Li highlights environmental protection, local economic growth, and infrastructure upgrades, particularly in the Global South, as key areas where she expects the initiative to make a difference when implemented.

For context, Li points to previous examples from China's development approach that have produced real gains. The China-Europe Railway Express, for example, has lowered transport costs across Eurasia, while towns along the rail route in Poland report new investment and economic renewal.

In this video, Li also explains why she views the Western-led governance system as outdated, discusses factors that keep China attractive for foreign investment, and shares her outlook for global economic growth.

Following is the transcript of the interview.

Diplomacy Talk: Against the backdrop of China-U.S. competition and the intensifying geopolitical conflicts, we are seeing a trend toward regionalization and fragmentation in global industrial and supply chains. The momentum of deglobalization appears to be strengthening. How would you assess the future trajectory of global economic development?

Li Qing: This is indeed a topic we have all discussed extensively, especially since the U.S. imposed additional tariffs this year. Theoretically speaking, a restructuring of global industrial chains is underway, driven by several factors. First, economic considerations play a role. In pursuit of higher efficiency and lower costs, industrial chains are being reconfigured.

Second, there are political factors, especially the impact of geopolitics on current industrial chains. The U.S. has introduced a series of initiatives, rallying allies and partners to reshape global industrial chains.

Third, technological advancements are driving significant restructuring in industrial chains, including the impact of AI, which is bringing major changes to the global industrial landscape.

Fourth, there are force majeure factors, such as earthquakes and wars. The Ukraine crisis, for example, has had substantial effects on European industrial chains.

All these factors have continuously influenced the restructuring of global industrial chains, especially in recent years with U.S. policy shifts. Notably, Washington has recently adopted a policy of negotiating tariffs on a country-by-country basis. The so-called "reciprocal tariffs" are upending some established rules. This poses significant challenges to the multilateral trading system under the World Trade Organization. Consequently, there is growing global momentum for WTO reforms to advance globalization. Meanwhile, Asia is actively developing regional industrial chains.

All these various factors contribute to considerable uncertainty regarding globalization, which is why we are witnessing phenomena such as fragmentation and regionalization.

As ongoing adjustments gradually lead to a new equilibrium, globalization will continue to move forward. China is actively advocating for this, and many other countries are also promoting multilateralism. One development we can anticipate is much-needed reform of the WTO, particularly its outdated elements. Additionally, gaps in WTO regulations, such as those concerning artificial intelligence and data governance, are likely to see meaningful progress and the emergence of a new consensus.

I remain confident that despite some setbacks, globalization will continue to advance. The process of globalization is irreversible, and this is a conviction I hold with steadfast certainty.

Diplomacy Talk: The current global economic governance architecture remains largely shaped by the Bretton Woods system, with Western nations dominating its rules and institutions. Given the growing demand for voice and representation from emerging economies, particularly the Global South, what do you see as the most critical flaws in the existing system?

Li Qing: The transformation of the global economic landscape, particularly the collective rise of Global South nations, has shifted the balance of power and exposed numerous challenges within the global economic governance system.

First, there is a failure of governance authority. As Global South nations gain influence, they face new developmental challenges and have unmet demands, whether in pursuing sustainable development, addressing environmental concerns or overcoming structural bottlenecks.

At the same time, the U.S. has encountered both external and internal issues amid globalization, such as domestic wealth inequality that has been exacerbated by it. This has led some Americans to push for changes in international institutions, arguing that existing frameworks, such as the WTO, no longer fully serve their interests. As a result, the balance of power within these institutions has become increasingly unstable.

Second, evolving functional demands in global governance have emerged. Rapid advancements in AI and the digital economy have introduced new issues that were not adequately addressed under earlier governance structures.

Third, there is growing fragmentation of consensus in global governance. Divergences between the Global South and the Global North have widened, and institutions such as the G20 have struggled to play an effective role. Meanwhile, the expanded BRICS cooperation reflects the growing influence of the Global South. This has further highlighted the divide in governance priorities and approaches between the South and the North.

These three dimensions collectively underscore the pressing challenges facing today's global governance system, demanding substantive reform and optimization.

One of the most critical issues in global development today is imbalance. For example, the imbalance both between nations and between developed and developing countries. Additionally, there is an imbalance within individual countries. For instance, even developed nations like the U.S. face regional disparities, such as those between its East and West coasts and the Midwest.

The issue of imbalance lies at the very heart of contemporary global governance. The fragmentation of power structures, functional deficiencies and the breakdown of consensus we discussed earlier all stem from these imbalances. Such disparities inevitably drive calls for change, demanding that we reform existing systems and transition toward more balanced and equitable institutions.

Diplomacy Talk: You just mentioned global governance. On Sept. 1, Chinese President Xi Jinping proposed the Global Governance Initiative (GGI) at the "Shanghai Cooperation Organization Plus" Meeting in Tianjin. This initiative has drawn significant attention both domestically and internationally, and many are eager to understand the key messages it conveys. Could you briefly explain this initiative?

Li Qing: Given the challenges facing the existing global governance structure and international order as we just discussed, the GGI holds significant meaning for peaceful development in this broader context.

The GGI stays committed to sovereign equality, international rule of law, multilateralism, a people-centered approach and real results. These "five core concepts" genuinely reflect the shared aspirations of Global South countries.

Since China proposed the Belt and Road Initiative (BRI) in 2013, over the past 12 years, China has, through concrete actions, delivered substantial benefits and prosperity to Global South nations and BRI partner countries. It has eased employment pressures in many countries and provided strong support for their economic development.

Institutions such as the Asian Infrastructure Investment Bank and the New Development Bank have offered significant support for infrastructure projects under the BRI framework and for the industrial development of these nations.

These practical actions demonstrate that the underlying purpose of the China-proposed GGI is to achieve shared prosperity, common development and ultimately, a community with a shared future for humanity.

Diplomacy Talk: What specific distinctions do you see between the GGI and the Western governance model?

Li Qing: The Western governance system led by the U.S. has played a significant role since the end of World War II. However, it is currently facing substantial changes as Washington has increasingly shifted toward hegemony and unilateralism.

I believe the strength of China's approach lies in its pragmatic stance, actively promoting global development, particularly in nurturing shared growth among nations in the Global South. This is precisely why China has garnered such strong support from the Global South.

Diplomacy Talk: Many people feel the GGI is high-level diplomatic discourse, quite distant from the everyday lives of ordinary citizens. Could you provide a concrete example to help people understand what tangible benefits this initiative would bring to the people of China and other countries if implemented?

Li Qing: China's philosophy is closely connected to people's daily lives. Issues like air and water are central to global governance. For instance, if water sources in Africa become polluted, it could ultimately impact our lives. Since both water and air circulate globally, addressing these challenges requires collective participation from all nations and peoples. Only through such joint efforts can we ensure access to clean water and fresh air.

Another vivid example is the China-Europe Railway Express (CRE). As of June this year, it has completed a cumulative total of 110,000 trips. Ordinary Chinese people can truly feel the benefits it brings. For example, many Chinese consumers can relish the taste of "cherry freedom" as falling prices make the fruit affordable. Thanks to the CRE, a significant portion of the cherries consumed in China are transported efficiently from Europe and other regions. This has made what was once a luxury fruit into an everyday delight for Chinese consumers.

Moreover, since the launch of the CRE, Chinese cities like Chongqing and Erenhot have become crucial hubs along the route, significantly boosting local economic development and creating numerous job opportunities.

Besides that, the railway has delivered substantial benefits to countries along its route. For instance, a small town in Poland has evolved into a key hub for the CRE. Because of this, the town has begun thriving. 

The CRE serves as an exemplar of global governance, where nations actively participate while also reaping shared benefits, leading to tangible improvements in people's livelihoods.

Diplomacy Talk: President Xi Jinping has stated that "China will continue to provide more opportunities to the world with its high-standard opening-up, and will contribute to the development of all countries with its high-quality development." In your view, in which dimensions is the "high standard" of this opening up primarily reflected?

Li Qing: Over nearly 50 years of China's reform and opening-up, we have witnessed the transformative changes it has brought. Today's "high-standard opening-up" differs from the past in four key ways.

First, it is institutional in nature, marking a shift from policy-driven to institution-driven opening-up. In its early stages, China's opening-up relied more on policy tools, such as land use and tax incentives. Now, however, China is advancing institutional reforms, for instance, by aligning with high-standard international trade rules. This represents a transition from policy measures to a systematic, institution-based approach to opening-up.

Second, the sectors we are opening up have also undergone significant changes. In the past, our opening-up efforts were primarily focused on manufacturing and trade in goods. Now, China is pursuing comprehensive opening-up, expanding into services, high-tech industries and beyond. Particularly in the service sector, we have achieved higher levels of opening-up in areas such as health care, education and finance. Moreover, in the financial sector, restrictions on foreign-funded banks have been further relaxed.

Third, our approach to opening-up has also evolved. Initially, China established special economic zones. Now, we have 22 pilot free trade zones and a series of new innovation platforms. A notable example is the Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone, established last year to promote high-tech development, demonstrating our deepened commitment to openness in technology. It's evident that our platform for opening-up has also evolved considerably.

Throughout this process, a crucial shift has been China's move from passive adaptation to active leadership in opening-up. By joining the WTO, China became further integrated into the global system with adoption of international rules. Today, we are progressively helping to shape those rules.

China has put forward four global initiatives, particularly the recent GGI, through which we are actively contributing to globalization. China's high-standard opening-up is injecting renewed vitality into the world, reinforcing multilateralism and advancing globalization.

Diplomacy Talk: Guangdong province, where you are based, has been a pioneer in China's reform and opening-up. In the current context, what new and groundbreaking missions has the Guangdong-Hong Kong-Macao Greater Bay Area been entrusted with?

Li Qing: The Guangdong-Hong Kong-Macao Greater Bay Area stands as one of China's most dynamic regions and represents the nation's most market-oriented and globally connected bay area. The Greater Bay Area includes Hong Kong, Macao, Shenzhen, Guangzhou and seven other cities in Guangdong, totaling 11 cities and regions, making it one of the world's most urbanized and developed areas.

Today, it serves as a critical hub for technology and innovation in China and a showcase representing the country's commitment to systemic reform, deeper global integration, alignment with international standards and a higher-quality economic model. It is also a testing ground for China's reform and opening-up. It will not only offer valuable experience for the nation's future development but also serve as an inspiration and demonstration for the world.

Diplomacy Talk: China's recent foreign investment data shows some fluctuations, prompting Western media outlets to amplify the narrative of foreign capital pulling out of China. Meanwhile, the Chinese government has introduced multiple policies to improve the business environment and attract foreign investment. What are the real challenges China faces in attracting foreign capital?

Li Qing: Indeed, recent data shows some foreign capital has shifted toward Southeast Asia, India and Mexico. However, there is another side to this story. For instance, I recently came across data from Guangdong province: From January to July 2025, Guangdong saw 17,000 new foreign-funded enterprises, with total investment increasing 65.6 billion yuan, up 8% year on year.

What I want to emphasize is that while we observe some relocation of foreign capital, we also see many foreign companies continue to invest in China. Based on current trends, I believe the overall trajectory remains one of growth. China ranked 31st in the World Bank's Doing Business 2020 report, underscoring its appeal as a highly attractive destination for investment.

China remains steadfast in its policy of opening-up, particularly through recent high-level opening-up in the service sector. This has drawn increased capital into industries such as banking, securities, health care and education.

I also want to highlight that China, with its market of 1.4 billion people, is willing to share its vast opportunities with the world, not only in consumption, but also in high-tech sectors such as AI.

China's enormous market remains highly attractive and is continuously undergoing transformation and upgrading. We are shifting toward a more consumption-driven economy, which means more investment opportunities and greater potential for development. This represents a compelling advantage in attracting foreign investment.

Presenter: Wang Xiaohui

Production supervisor: Xue Lisheng

Co-production supervisor: Li Xiaohua

Executive producer: Zhang Liying

Producer: Zhang Ruomeng

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

Produced by chinadiplomacy.org.cn