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Spotlight on the Global South

Source: Science and Technology Daily | 2025-04-02 18:16:09 | Author: TANG Zhexiao

Themed "Illuminating Global South", the 2025 Global South Financiers Forum was recently held in Beijing.

Despite the sluggish global economic recovery, Global South countries have secured a steady economic growth and shown remarkable resilience.

According to the UN Trade and Development, as of 2023, Global South countries accounted for 42 percent of world GDP, 44 percent of merchandise exports and 65 percent of foreign direct investment inflows.

"In the next five years, the world GDP will grow by 55 trillion USD, 70 percent of which will come from the Global South," according to UN Trade and Development Secretary-General Rebeca Grynspan.

Financial cooperation is an important area of mutually beneficial collaboration for the Global South.

Dennis Munene Mwaniki, executive director of China-Africa Center at the Africa Policy Institute, said the forum will foster a shared vision for South-South cooperation, and facilitate the establishment of an information sharing mechanism and a pragmatic cooperation framework.

China has been actively promoting South-South cooperation. From infrastructure to food security, from public health to social services, China's financial institutions have built a bridge for Global South cooperation to further enhance people's well-being.

The country has proposed providing 10 billion USD of trade finance to support African exports, and build a pioneering zone for in-depth China-Africa trade and economic cooperation. By the end of 2024, the Export-Import Bank of China (China Eximbank) had supported the export of specialty products and agricultural products from more than 20 African countries to China.

In 2024, the Agricultural Bank of China provided nearly 100 billion USD in settlement and financing services for trade between China and the Global South countries, supporting more than 100 Chinese companies to carry out project cooperation with more than 40 Global South countries.

Green and low-carbon development is the keyword for high-quality development in the Global South.

Among the overseas projects supported by China's financial institutions, green projects account for a large proportion. The Uganda Karuma Hydropower Station, which was financed by the China Eximbank, was connected to the national grid in February 2024, supplying green power to different parts of the country and the region.

China has taken practical actions to share green development concepts and technologies with developing countries and jointly seek a path for green development.

Besides setting up a China South-South Climate Cooperation Fund to provide 20 billion RMB to help developing countries tackle climate change, China also included "promoting green development" into eight major steps to support joint pursuit of high-quality Belt and Road cooperation.

Observers say that the promotion of South-South financial openness, cooperation and connectivity will effectively help the deep integration of the markets of the Global South, promote the optimal allocation of resources and mutual benefit and win-win results, and become a driving force for global economic growth.

Editor:TANG Zhexiao

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