China, the G20 and global economic governance

In light of China’s recent appointment as chair of the G20 in 2016, a new Lowy Institute Analysis examines China’s approach to global economic governance.

Authors Hugh Jorgensen and Daniela Strube argue that China will seek a greater role in global governance processes, but will pursue a combination of approaches.  

“China’s pursuit of a greater role in global economic governance is pragmatic, opportunistic and self-interested” said co-author Hugh Jorgensen.

Jorgensen and Strube highlight that although the G20 has the potential to help China expand its role in global economic governance, it will not ‘place all its eggs in one basket’.

China is both seeking changes to the ‘traditional’ global economic governance model, centred upon the Bretton Woods Institutions, and experimenting with new processes such as the BRICS forum and the Asian Infrastructure Investment Bank.

The G20 has the potential to help China expand its role in global economic governance while retaining the fundamental building blocks of the current architecture.

The Analysis concludes that “there is little evidence to suggest that China’s push for greater representation in global economic governance is part of a long-term plan to openly challenge the status quo.”