China fears alienation from new global economic order

One of China's top trade negotiators warned that his country's handling of the coronavirus pandemic could lead to alienation from the new global economic order.

Long Yongtu, the former vice-minister of the Ministry of Foreign Trade and Economic Cooperation who helped secure China a place at the World Trade Organization in 2001 added to growing concern in Beijing over the long-term fallout.

"China is an important participant in globalisation,” Long said at an online finance summit.

"When people begin to talk about ‘deglobalisation,’ it also indicates some level of ‘de-sinicisation.’ Therefore, we need to be highly wary of that."

Covid-19 has wreaked havoc on supply chains around the world and exposing China to risk as a key manufacturer. The disruption has also caused concern over a loss of confidence in globalisation.

China has been accused of covering up its death toll and not reacting fast enough to the initial outbreak. Many have argued that China's alleged downplaying of the virus led to a false sense of security around the world, and a slowed down the global response to the pandemic.

Despite growing international hostility towards China, Long remained optimistic about the long-term prospects for globalisation. He does not foresee foreign investment to abandon China.

"As the manufacturing industry remains strong in China, along with a large domestic market and an investment-led growing economy, the pandemic will not damage China as much after it is over," Long said.

He believes enterprises will remain in China after the pandemic as the country is still attractive for foreign investments in the world stage.

"As China improves the investment environment after the outbreak, new opportunities and economic infrastructure will attract foreign investments," Long said.

He called on China to further open up its domestic market to foreign investors and for Chinese companies to pursue more mergers and acquisitions abroad, an attempt to integrate China further into the global industrial chain.