Founded in 2001, the Baoao Forum for Asia (BFA) is an annual forum which aims to promote regional economic integration and collaboration within Asian countries. This year’s 22nd BFA was the first time it has been fully held in Baoao since the outbreak of the COVID-19 pandemic. The conference took place from March 28-31 under the theme “An Uncertain World: Solidarity and Cooperation for Development amid Challenges.” Discussion topics ranged from the need to uphold multilateralism, to maintaining the security of global industrial supply chains, and promoting development through regional economic integration. Approximately 2000 delegates consisting of political figures and business leaders attended the forum this year. Notable attendees include Malaysian Prime Minister Dato’ Seri Anwar Ibrahim, Spanish Prime Minister Pedro Sanchez, Singaporean Prime Minister Lee Hsien Loong, ASEAN Secretary-General Kao Kim Hourn, and IMF Managing Director Kristalina Georgieva. 

Reinforcing China's Role as a Global Power

Chinese Premier Li Qiang delivered the opening keynote speech, where he pointed out that despite rising uncertainties globally, “China’s certainty is a mainstay that safeguards world peace and development.” Key terms that Li uses to describe China include “long-term stability,” “commitment to development,” and “confidence and openness” – all of which demonstrates China’s self-portrait as an anchor of global pace and development. Li sought to rally Asian countries behind China in his very first public address to an international audience as premier, reiterating the Chinese Communist Party’s goals of “national rejuvenation” and seeking to lead the region’s development while promoting “social stability.” Reinforcing China’s status as a reliable leader for the region is especially significant given the country’s tumultuous economy. President Xi Jinping’s policies – such as China’s zero Covid policy and tough policies vis-à-vis the real estate sector- were held responsible for the slowdown of the nation’s economy. China faced serious protests over severe pandemic restrictions in China, weighing heavily on economic growth and rising unemployment. However, Li’s speech demonstrates a growing optimism in the Chinese economy and the larger region, stating that “the dynamism and momentum of China’s economic growth are strong,” highlighting Hainan and its booming tourism sector. 

Asia as a ‘bright spot’ in a bleak global economic landscape 

Amid the global economic downturn, Asia’s growth rate is estimated at 4.5% in 2023, according to the Baoao Forum annual report. The executive summary suggests that “deepened financial integration in Asia has made regional economies more resilient against negative impacts from international capital flows.” The report reiterates Asia as a key driving force for supporting global growth, upholding multilateralism, and advocating global economic governance amid global economic uncertainties. However, the report also warned of the relatively weak growth momentum of emerging markets in developing economies, attributing it to weakened external demand, tightening financial conditions, and insufficient investment. Despite this, the report generally demonstrates a sanguine outlook and urges the region to seize the ‘Asian moment’ for global economic governance. 

Safeguarding Regional Stability and Economic Integration 

Most significantly, Anwar Ibrahim and Lee Hsien Loong made a pitch for cooling the tensions between the U.S. and China, citing that clashes between the U.S. and China will have grievous consequences globally. Strains between the two superpowers have come to an all-time high after the U.S. shot down an alleged Chinese spy balloon and after Chinese officials stated they were considering providing lethal aid to Moscow for its war in Ukraine. Additionally, there are concerns about the tech rivalry between the U.S. and China that will “raise costs and impede progress,” deviating from the vision of economic competition and spirited collaboration. Anwar Ibrahim called for more collaboration to “reduce inequality, promote social justice, and enhance standards for living,” citing China’s Belt and Road Initiative (BRI) as a productive means to promote solidarity and cooperation. Similarly, Lee Hsien Loong stressed that “big powers have a heavy responsibility” to maintain stable relations with one another. In an attempt to foster closer integration, an initiative that called for more partnerships between free trade zones (FTZs) across the world was also launched at Baoao. It aims to strengthen cooperation in aviation and shipping networks, logistics and cross-border e-commerce.

Cooperation over South China Sea Dispute

Another critical issue discussed at the conference was tensions in the South China Sea. The South China Sea is highly contentious as it involves overlapping disputed territory claimed by China, Malaysia, Vietnam, the Philippines, and other countries. The conference emphasized the importance of peaceful resolution of disputes and respect for international law and freedom of navigation. Beijing continued to push for a code of conduct talks regarding the South China Sea to avoid misunderstandings and conflicts. Although there were discussions of possible “negotiations” towards a peaceful resolution to the dispute, semantics remain concerning to some. For instance, Malaysia remains cautious about entering into negotiations with China because it could be interpreted as a tacit recognition of China’s claims over Malaysia’s exclusive economic zone (EEZ). Therefore, Ibrahim stated that while their position on the South China Sea remains “consistent and unchanged,” they are open to negotiations if that is the “condition” for Malaysia to continue energy exploration projects, especially in the Kasawari gas field. 

Collaboration on ESG Endeavours

Climate change and a continued commitment to sustainable practices were also major topics discussed at the conference. China, as the world's largest carbon emitter, pledged to reduce its carbon emissions by 50% by 2030 and reach carbon neutrality by 2060. Mr Yi Gang, the governor of the People’s Bank of China – the country’s central bank – said that there was a need for financial incentives to achieve China’s green goals. He noted that over 300 billion yuan (USD$43.6 billion) in re-lending facilities have been issued to fund green projects. The leaders also agreed to cooperate in promoting clean energy, green finance, and sustainable development. There was a particular emphasis on the need for global collaboration amid the immense growth potential within the ESG spaces. The Baoao Forum played a significant role in reinforcing China's role as a regional and global power. 

A China Showcase

The conference showcased China's leadership and initiative in addressing critical global issues and promoting cooperation and inclusive development. This comes at a crucial moment when there are concerns about rising tensions stemming from U.S.-China relations. The conference also highlighted China's growing influence in the region and its relations with other countries, including those outside the BRI. China's commitment to the BRI and sustainable development could enhance its economic and political influence in Asia and beyond. China's efforts to reduce carbon emissions and promote clean energy could also position it as a leader in global climate governance, especially in the absence of strong U.S. leadership. However, China's territorial claims and actions in the South China Sea remain a contentious issue that could strain its relations with other countries.