Not a zero-sum game: global governance must adapt to the new US-China equation

Daniel Russel says new models of global governance that promote healthy competition as well as cooperation on big challenges are needed to address the changing dynamics between the US and China, and that the latter’s new regional initiatives could be a road test of the country’s emergence as a world leader

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US President Donald Trump and Chinese President Xi Jinping at the Great Hall of the People in Beijing in November 2017. Photo: AP

Published: 10:32am, 17 Jan 2018Updated: 10:32am, 17 Jan 2018

Hong Kong is an ideal place to examine the issues of China, the US and global governance. Few places have benefited more than Hong Kong has from two of the major developments of our era: China’s emergence as an economic powerhouse and the globalisation of the world economy.

One of the reasons that Hong Kong has been effective in facilitating China’s integration into the international economy is its long-standing status as an international financial centre. That status is based on its openness to commerce and foreign investment, its independent and professional legal system, its robust and transparent regulatory regimes – and, of course, its open press environment and high-quality publications.

So not only has Hong Kong done well for itself, but its transparency, openness and adherence to international norms have also helped China navigate, and thrive, in the present-day international system.

Many of Hong Kong’s advantages derive from the “one country, two systems” framework, which aim to protect the core values of freedom, human rights, democracy, the rule of law and clean governance. Hong Kong has had to deal with some pressure from within and without on the high degree of autonomy accorded to it under the Basic Law. So, it’s important to bear in mind that both elements of Hong Kong’s status – the “one country” part and the “two systems” part – are essential to sustaining its comparative advantages.

How ‘one country, two systems’ is tearing Beijing and Hong Kong further apart

A tourist takes a selfie on The Peak in Hong Kong. Not only has Hong Kong done well for itself, but the city’s transparency, openness and adherence to international norms have also helped China navigate, and thrive, in the present-day international system. Photo: AFP

But the broader point is that since the launch of economic reforms in 1978, China, and by extension Hong Kong, have benefited immensely from the existing international system. Over time, China has become both a member, and a key beneficiary, of most international regimes. And it’s no accident that China’s economic boom accelerated following its accession to the World Trade Organisation in 2001.