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Despite being the world's second largest economy and the largest trading partner for a majority of countries, China experiences limited influence in traditional international economic institutions like the World Bank Group and International Monetary Fund IMF, leaving many Chinese experts and policymakers discontented. This paper dives into various dimensions of dissatisfaction among Chinese scholars and officials with existing global governance structures, with a particular emphasis on the World Trade Organization WTO and IMF. We also analyze the underlying aspirations that motivate proposed changes to different institutions according to discussions with Chinese experts.
In the realm of the IMF, China is advocating for more representation in decision-making processes. Simultaneously, within the WTO, China revise rules so as to prevent the United States from disproportionately influencing the organization's case volumes. Moreover, China anticipates navigating an increasingly fragmented and intricate landscape of global governance institutions, including those it has established like the New Development Bank or BRICS Bank and the Asian Infrastructure Investment Bank IB across diverse regions and issue areas.
The continuous relevance and effectiveness of Bretton Woods Institutions in addressing 21st century global challenges necessitates China's active engagement with these institutions. However, the lack or slow progress toward substantial reforms within them heightens the risk of China becoming disillusioned and disengaging from them. Therefore, it is imperative for the United States alongside other G7 allies, Organization for Economic Cooperation and Development OECD nations should undertake meaningful steps to ensure that existing global governance institutions are more inclusive of developing and emerging economies, with an emphasis on China, while also engaging closely with regional multilateral development banks and financial institutions worldwide.
This new report highlights the upcoming challenges faced by Bretton Woods Institutions in the future. While comprehensive reforms may not be feasible due to heightened geopolitical tensions and mistrust among major countries, addressing these challenges is urgent. Therefore, it's critical to explore more practical reform options that are narrow in scope and technocratic in nature, ming to enhance global governance institutions' performance.
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Chinas Influence in International Institutions IMF and World Trade Organization Reforms Global Governance in the 21st Century Developing Economies Role at Bretton Woods Strategic Engagement with Multilateral Banks Updating Global Economic Institutions Reform