What New Challenges Confront the Development of the Global South
Oct 06-2025
*This article is based on the keynote speeches of Huang Yiping, Boya Distinguished Professor at Peking University and Director of the National School of Development, and Dean of the South-South Institute.
What New Challenges Are Countries in the Global South Facing?
The "Global South" generally refers to developing countries across Africa, Latin America and the Caribbean, the Pacific Islands, and Asia, covering a broad geographic area. While their income levels are generally low, they constitute a crucial part of the global economy. Currently, many Global South countries face challenges in income growth and economic development: many have fallen into the "middle-income trap," and many others remain trapped in long-term poverty. Additionally, new technologies—particularly artificial intelligence—have brought both new opportunities and numerous new challenges to the world. Another challenge is the so-called "Kindleberger Trap": the United States, which has long played a key role in providing global public goods, has begun to adopt a withdrawal stance. If this trend continues, who will uphold the future international economic order? And what does the shifting international environment mean for the economic development of Global South countries? These questions merit in-depth consideration.
What Can China Do to Support the Development of the Global South?
1. The Reference Value of China’s Experience for Global South Countries
The most significant insight from China's experience for Global South countries lies not in specific policies, but in the principle of "pragmatism": the key is to prioritize feasibility while maintaining a clear results orientation. This aligns with the approach of "crossing the river by feeling the stones"—if a measure works, we continue to advance it; if not, we adjust course and explore new directions. Only with a pragmatic policy philosophy can we effectively drive economic development.
2. How China Can Collaborate with Global South Countries to Address New Challenges to the International Economic Order
There are numerous areas for potential cooperation among Global South countries. However, these countries vary in their political and economic conditions, and their interests and demands are relatively diverse. Therefore, economic cooperation should strive to identify a "common ground"—promoting greater collaboration among Global South countries to preserve, as much as possible, the existing relatively open and transparent trade and investment order.
3. China’s New Approach to Supporting Cooperation and Development in the Global South
China has achieved remarkable progress in the field of green energy, but it also faces overcapacity issues. These challenges become even more formidable when confronted with tariffs and market barriers in European and American markets. Meanwhile, Global South countries need to pursue a green energy transition but lack sufficient funds, technology, and related products. The Global South Green Development Plan offers a new macroeconomic coordination approach: by providing policy-based and commercial financing, it supports Global South countries in achieving green energy transitions—this will directly boost demand for China’s new energy produ
