December 15, 2023. Shanghai – Following nearly a century of rapid globalisation, successive international shocks and challenges to world stability have called the progress of this trend into question, with factors such as social resentment in some countries, the global pandemic, heightened geopolitical tensions, and shifts in the balance of economic power raising questions about the merits and the sustainability of this global model.

Former Director General of the World Trade Organization and CEIBS Distinguished Professor Pascal Lamy was joined by CEIBS Professor of Economics and Finance Xu Bin for a talk on What’s Next for Globalisation? at our Shanghai campus today to discuss this important issue.

In an opening address, CEIBS President and Professor of Management Wang Hong stated that in the face of a shifting global landscape and increased geopolitical tensions, the future of globalisation has become a vital question.

“I hope today's discussion between the two professors will contribute wisdom to our approach to the current dilemma of our times and shed light on our understanding of the current globalisation landscape,” President Wang said.

In his keynote speech, Professor Lamy emphasised that we are witnessing the winds of change when it comes to all three of globalisation’s major shaping factors, namely technology, ideology, and peace.

“In the past, these three drivers moved toward the same direction, which largely facilitated global trade and economic development. But now, some of these “winds” are blowing in different directions due to the rise of geopolitical conflict, more fragmented ideological differences about the benefits of openness, and the risks of fragmentation in the digital age.

Professor Lamy explained that this did not necessarily mean that we would enter an era of de-globalisation, but that the pace of globalisation would likely slow down (“slowbalisation”) and that its patterns would be increasingly influenced by security requirements (“paranobalisation”). He then proposed several solutions for countries to contain the risk of further divisions and navigate global turbulence.

“First, we should try to ease geopolitical tensions and rebuild trust through high-level dialogues leading to progressive confidence measures in Sino-US relations. On the climate governance front, more efforts are needed to proportion efforts to responsibilities for industrialised and other countries in order to reduce carbon emissions, support adaptation, phase out carbon and research geoengineering. A better system of climate divergence is needed to reduce discrepancies among climate related trade measures,” Professor Lamy said.

Although EU-China relations still face significant headwinds due to political and economic factors, he pointed out that two of the world’s major economic powers are aligned in addressing global warming and clean energy with their complementary capacities.

“China and Europe have a lot in common in terms of dealing with the environment, which is a very good starting point. We can help build a more coherent environmental governance system where China draws lessons from the EU’s regulatory experience, including in carbon pricing, and the EU learns about the successes of China in rapidly developing its impressive green tech capacities” he added.  

After his speech, Professor Lamy participated in an engaging dialogue with Professor Xu Bin for an in-depth discussion on the new trends in globalisation, the role of the EU in reshaping the world economy, the trade deficit between China and the EU, and the impact of artificial intelligence on globalisation.

“It’s more difficult to address core issues in today’s era than ever before because there are many disruptive factors,” Professor Lamy said. “The key is to establish more uniform regulation, whether in terms of global trade or climate change.”

Talking about CEIBS’ role in bridging economic and cultural exchange between China and Europe, Professor Lamy recognised that as a role model of EU-China co-operation, and given its unique offer of “China Depth, Global Breadth”, CEIBS mix of Chinese and foreign students and faculty is what makes it stand out among global business schools.

“Despite political forces pushing towards other directions, CEIBS should maintain the competitiveness brought by its multi-national faculty and students. The graduation diploma of CEIBS is highly valued in Europe, which is why it attracts many Chinese and international students, who can better understand China and the world through CEIBS. Let us build as much as possible on the specific synergy you have created,” Professor Lamy concluded.