Eliza Wong
The Strategic Imperative for China’s New Economic Era
Global economic dynamics are undergoing seismic shifts, and China stands at a pivotal juncture in its developmental trajectory. According to Wei Jianguo (魏建国), former Vice Minister of Commerce and China Center for International Economic Exchanges expert, China must fundamentally transition from a factor-driven economic model to become a global rule-setting powerhouse. This strategic transformation dominated discussions at the 2025 China Enterprise Globalization Summit in Shenzhen, where business leaders convened to address systemic challenges amidst restructuring global supply chains.
Understanding China’s Economic Evolution
The factor-driven growth model propelled China’s meteoric rise through decades of capital infusion, labor mobilization, and resource allocation efficiency. However, as Wei emphasizes, this approach faces diminishing returns amid changing global competition rules. The transformation to rule-setting leadership represents China’s next frontier – where the nation shapes international trade frameworks rather than merely participating in them. This paradigm shift requires navigating complex geopolitical landscapes while leveraging digitalization and sustainability transitions.
Three Strategic Moves for Rule-Setting Transformation
Strategic Move 1: Active Alignment with Global Standards
"China must proactively digest and implement international frameworks," asserts Wei Jianguo, highlighting CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) and DEPA (Digital Economy Partnership Agreement) as critical benchmarks. Unlike passive adoption, this active alignment involves:
- Establishing specialized task forces for CPTPP compliance mapping
- Developing rapid-assessment mechanisms for new digital trade rules
- Creating bilateral alignment programs with ASEAN and EU partners
Strategic Move 2: Building Digital and Green Ecosystems
The second move centers on creating globally competitive operating environments where innovation thrives. "Government and enterprises must jointly cultivate fertile ground," Wei advocates. Key actions include:
- Implementing nationwide negative lists for digital market access
- Expanding digital services trade through sandbox regulations
- Establishing carbon accounting standards for export manufacturing
China’s Ministry of Industry and Information Technology plans to release the Green Manufacturing Standards Framework by Q1 2025, accelerating corporate transition timelines.
Strategic Move 3: Establishing Global Leadership in New Economies
"Our goal is transformation from follower to shaper," Wei emphasizes, positioning China as a rule-setting hub for emerging sectors. This requires:
- Financing joint research programs with international partners
- Developing blockchain authentication for cross-border data flows
- Creating modular green standards adaptable to developing economies
Breakthrough initiatives like the Belt and Road Digital Corridor demonstrate China’s rule-setting aspirations in action.
Implementing the Transformation Framework
Government Policy Catalysts
Accelerating China’s transformation demands synchronized regulatory modernization:
- Fast-tracking amendments to Foreign Investment Law
- Designating pilot enterprise status for rule-setting exporters
- Establishing international arbitration courts specializing in digital trade
The Shenzhen Special Economic Zone recently launched Asia’s first DEPA Compliance Center, signaling institutional commitment.
Corporate Transformation Pathways
Leading enterprises like Alibaba and Huawei showcase practical approaches:
- Embedding CPTPP compliance into supply chain contracts
- Establishing overseas green technology demonstration zones
- Developing proprietary carbon accounting methodologies
Tencent’s cross-border data compliance system reduced customs clearance time by 78% in pilot regions.
Navigating Implementation Challenges
Geopolitical Considerations
Transitioning from factor-dependency to rule-leadership encounters resistance. Strategic navigation involves:
- Building alliances through South-South standardization bodies
- Developing graduated adoption pathways for developing economies
- Creating technology transfer protocols for green standards
Domestic Structural Reform Needs
Internal transformation prerequisites include:
- Modernizing provincial-level regulatory frameworks
- Updating intellectual property enforcement mechanisms
- Establishing cross-ministerial digital governance taskforces
The forthcoming national digital services census will identify institutional gaps.
The Future Landscape of Global Economic Governance
The transformation to rule-setting leadership represents China’s most significant economic repositioning since WTO accession. Success will reshape global commerce fundamentals:
- Green and digital standards becoming de facto global norms
- Hybrid governance models blending state and market approaches
- New valuation metrics measuring rule-influence alongside GDP
Quantifying Transformation Impact
Analysis indicates potential outcomes:
- 13-17% increase in services trade volume by 2028
- Reduction in cross-border transaction costs by $220B annually
- China potentially leading 40% of new digital standards by 2030
Seizing the Rule-Setting Opportunity
China stands before a historic inflection point requiring decisive action across policy, corporate, and societal dimensions. Implementing Wei Jianguo’s strategic framework demands synchronized efforts:
- Prioritize regulatory harmonization in targeted sectors like IoT and carbon trading
- Establish co-governance models with ASEAN trading partners
- Develop metrics for rule-influence benchmarking
The transformation to rule-setting leadership isn’t merely economic restructuring – it represents China’s entry into global governance’s commanding heights. Enterprises must proactively re-engineer compliance frameworks, while government should accelerate institutional modernization.
Global economic leadership awaits nations mastering standards creation. China’s moment requires boldness in execution and collaboration in vision. Companies rewriting operational playbooks today will emerge as tomorrow’s rule-setting vanguard.
