Economic Cooperation Between China and the Global South: From Trade and Investment to Belt and Road Infrastructure Collaboration

This chapter examines the evolution of economic cooperation between China and the Global South, from trade and outward investment to infrastructure collaboration under the Belt and Road Initiative (BRI). It shows that as China’s domestic factor cost increases and its external environment has become more uncertain, low- and middle-income economies have become increasingly important partners in China’s trade, investment, and industrial cooperation. Through trade, foreign direct investment, and infrastructure financing, China has contributed to industrialization and economic growth in many countries of the Global South. The chapter also discusses the main challenges facing this cooperation, including sovereign debt risks, weak industrial foundations in host countries, and the political, legal, and operational difficulties encountered by Chinese firms overseas. In response, it proposes policy recommendations on debt governance reform, more sustainable BRI financing, stronger support for Chinese firms’ overseas investment, and deeper South-South cooperation through knowledge sharing and capacity building.