China's pivotal role in Global South

In 2024, the world was facing major challenges in terms of economy, security, climate change and the possibility of the global order collapsing.

The countries of the Global South suffer from all these challenges more than the developed countries. Therefore, the countries of the Global South need to cooperate with each other and show solidarity more than ever before, and they also need to benefit more from China as an economic superpower and a country with political clout to lead the countries of the Global South in shaping a more stable and just world.

China's efforts to confront challenges faced by countries in the Global South can be analyzed under the following heads.

Investment and infrastructure

Through the Global Development Initiative and the Belt and Road Initiative, China has become a major investor in infrastructure projects across Africa, Asia, and Latin America. These include transportation networks, energy systems, and industrial parks, helping to drive economic development and trade in the Global South. China provides financial and technical assistance to many Global South countries, particularly through grants and concessional loans. These are often tied to Chinese construction and development companies, which strengthens China's economic presence. This form of aid is seen as an alternative to the more traditional Western aid models, and, in many cases, China's assistance is welcomed because it comes without any political conditions attached.

Technology and innovation

China has long advocated technology transfer to the Global South. As it is increasingly becoming a global leader in technology and innovation, many countries in the Global South benefit from China's technological advancements. China's telecommunications companies, such as Huawei and ZTE, are integral to the development of 5G networks and other technological infrastructure in many Global South countries. Chinese e-commerce giants like Alibaba and Tencent are also expanding their influence in the Global South by facilitating trade, digital finance, and connectivity.

Climate change and sustainability

China is increasingly engaged in climate diplomacy and plays a central role in promoting green development in the Global South. Its experience in renewable energy, as well as its leadership in climate financing, makes it a key partner for countries facing the dual challenges of development and environmental sustainability.

There are many examples of the important role China plays in global development. Take the case of Egypt. With investments exceeding $3 billion, the Egyptian-Chinese economic zone in the Suez Canal area has been able to establish more than 200 factories, creating more than 30,000 job opportunities. These factories export their production and help the Egyptian economy. Clean energy projects such as the Benban Solar Park in Aswan, the electric train in the new administrative capital, and the satellite assembly station are success stories of technological cooperation between Egypt and China.

Political and diplomatic challenges

In 2024, China participated in all the forums involving Global South members, such as the Forum on China-Africa Cooperation, the Asian Cooperation Dialogue, the Shanghai Cooperation Organization, the Asia-Pacific Economic Cooperation and the G20, and presented important proposals and policies.

China's importance to countries of the Global South can be gauged from the number of countries of the Global South that are rushing to join the BRICS grouping. They are attracted by effective and useful initiatives, such as the establishment of the New Development Bank and its contributions to many projects through low-interest financing without imposing any conditions. There is also the initiative of trade between BRICS members in local currencies, while the group discusses the idea of issuing a new currency that could arrest the United States from using the dollar as a tool to impose economic sanctions, or of printing it in a big way to harm the global economy through waves of inflation.

At the 16th BRICS Summit in Kazan, Russia, Chinese President Xi Jinping called for rallying the countries of the Global South to promote the building of a community with a shared future for humanity. He emphasized the need for true multilateralism and a governance approach characterized by extensive consultation, joint contribution and shared benefits.

The pivotal role China plays for the benefit of countries in the Global South is also evident in the UN Security Council. This was in stark contrast when the United States prevented the Security Council from issuing a binding resolution to stop the war in Gaza.

At this critical hour, China's role is not only required but also necessary, as the challenges are very great and failure to confront them will have disastrous effects not only on the countries of the Global South but on the entire world.

The author is the first economist researcher at Egyptian ministry of foreign trade and industry.

The views don't necessarily represent those of China Daily.

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