China’s foreign policy gets pragmatic for the economy’s sake
China is taking steps to increase its prospects as an open country for business, investment, and innovation.
By retaining Gang and veteran Liu Kun as the heads of the People’s Bank of China and the Ministry of Finance, Beijing emphasizes the importance of stability and consistency in its economic policies.
European leaders hosted by Beijing, including European Council President Charles Michel and the German chancellor, reaffirmed China’s aim to restore stable diplomatic ties with Western powers.
The meeting between the President and the Prime Minister of Australia in November last year promoted the development of normal trade and diplomatic relations between their countries.
As China’s economy regains its former strength, the international community must be confident that Beijing’s renewed strength will remain in economic expansion.
In addition to structural issues such as stagnant productivity growth, a sharp demographic situation, and unproductive high debt burdens carried by provincial and local state-owned companies, China must also address the partners in the room: widespread uncertainty about its geopolitical priorities and direction.
As such concerns affect China’s foreign investment attitude, there are several mechanisms that Beijing’s foreign policy administration should take to promote the revival of the country’s economic situation, strengthen lagging domestic and national enterprises, and realize the common goal.
First, suppose economic relations with Europe are to be truly strengthened. In that case, China must recognize that economic needs, shared principles, and values govern the EU. Expanding trade with European economies requires China to tone down its threatening actions and willingness to appease countries it sees as hostile to its ever-growing core interests.
China should also be more constructive in working with Europe to address Ukraine’s challenges.
China’s pragmatic foreign policy: Implications for Iran-Saudi relations and Taiwan’s business community
Beijing’s announcement of stabilizing relations between Iran and Saudi Arabia this month signaled that China could mend the rival powers’ long-standing rivalry. Apart from its involvement in resolving the conflict in Ukraine, Beijing also needs to address the challenge of persuading the global business and financial sectors about its amicable stance towards Taiwan.
In general, China should continue to reduce its belligerent attitude and commit to being more open to potential investors. After meeting with the US president in Bali last November, the positive attitude of Chinese diplomats proves that China can create better attitudes about itself.
As for the trade and financial situation, deals will only be made if the business believes in stability and a positive future. If Beijing intends to progress in its economic endeavors following the termination of its zero-COVID approach, it must adopt a practical foreign policy approach.
