top of page
Search

China’s Vision to Shape Global Governance and Attract Capitals

  • etao948
  • 17 minutes ago
  • 3 min read

Xi’s speeches outline China’s global vision


In two major speeches delivered early September, Chinese President Xi Jinping outlined his vision for global governance and China’s role in shaping the international order.

Speaking at the SCO Plus meeting, Xi outlined several points toward achieving a proposal he called the “Global Governance Initiative”.

An indication that he would take the lead on this initiative came with his statement:

…I wish to propose the Global Governance Initiative (GGI). I look forward to working with all countries for a more just and equitable global governance system and advancing toward a community with a shared future for humanity.

The idea put forth for GGI is rooted in sovereign equality and a people-centered approach to “ensure that the people of every nation are the actors in and beneficiaries of global governance”. He advocated for adherence to international law via strengthening the role of the UN, and that this should come with greater representation from developing nations.

Xi also expressed China’s commitment to deepening cooperation with SCO members by expanding trade, technology, and sustainable development initiatives. Over the next five years, China plans to increase photovoltaic and wind power capacity by 10 million kilowatts. He also proposed joint efforts in AI, encouraged wider use of the Beidou Satellite Navigation System, and invited participation in the International Lunar Research Station project.


At the Beijing ceremony, which marked the 80th anniversary of the end of World War II, Xi urged nations to choose cooperation over confrontation. He reiterated China’s commitment to peaceful development while also stressing his vision to “speed up the building of a world-class military” to safeguard China’s sovereignty (1).


Initiatives to drive foreign investments


Earlier this year, China unveiled a comprehensive action plan to stabilize and expand foreign investment. Invest in China, which is both a government initiative and a developing brand (2), comes amid a global shift in investment outlooks, and seeks to fill the gap for international investors.


The plan introduces 20 key measures aimed at making China a more attractive destination for foreign capital. These include removing restrictions on foreign investment and the use of domestic loans, facilitating mergers and acquisitions, broadening market access in key sectors, and encouraging foreign participation in high-tech industries (3).


However, there are still challenges ahead in getting international investors on board. According to China’s Ministry of Commerce, foreign direct investment continues to fall, albeit at a slower pace. In August FDI fell 12.7% YoY, a slight improvement from July’s 13.4% decline. Nevertheless, high-tech industries drew CNY 148 billion, demonstrating that foreign interest is there, even if overall inflows have slowed. Sectors with standout growth include e-commerce (169.2%), aerospace manufacturing (37.5%), and pharmaceuticals (23.2%). Primary foreign investment came from Japan, Switzerland, and the UK (4).

ree

On the equities front, foreign investors are cautiously returning after years of retreat, drawn by advances in AI, semiconductors, and biotech (5). Investors are increasingly seeing China as a valid diversification from US-based assets thanks to policy changes which have expanded access to its equities and derivatives markets, while preparing a robust pipeline of new product launches that are crucial to its green transition and sustainable development initiatives (6).

ree

Since the beginning of 2025, the Shanghai Stoch Exchange recorded a 20% increase. While early movers and hedge funds are increasing their allocations, broader inflows have yet to take off, suggesting that Chinese equities are still competitively priced.

ree

Beijing’s policy-driven stock market surge has lifted A-share values 52% over the past 12 months. Equities now serve as a key alternative for savings amid the ongoing weakness in the real-estate market, which has seen investment fall 12.9% (7).


References

 
 
 

Comments

Disclaimer This document, and the information contained in it, is prepared by Silverhorn Investment Advisors Limited (“Silverhorn”) and is strictly confidential. As such, this document must not be issued, circulated or distributed to any other person other than the intended recipient under any circumstances without prior written consent of Silverhorn. This document is not directed to any person in any jurisdiction which (by reason of that person’s nationality, residence or otherwise) is prohibited by law to access such information. For investors in Hong Kong: Any products and services contained and described in this document are intended only for “professional investors” as defined in Part 1 of Schedule 1 to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong). For investors in Singapore: Any products and services contained and described in this document are intended only for “institutional investors” and “accredited investors” as defined in section 4A of the Securities and Futures Act (Chapter 289 of the Laws of Singapore). For investors in Switzerland: This marketing communication and any products contained and described in this document are intended for “qualified investors” as defined under Article 10 of the Swiss Federal Act on Collective Investment Schemes (Collective Investment Schemes Act, CISA) of 23 June 2006 (SR 951.31) and the FINMA Circular 2013/9. Not intended for U.S. Persons: Any products and services contained and described in this document are not intended for any U.S. Person under Regulation S of the U.S. Securities Act of 1933, as amended. This document is provided for information purposes only and does not constitute an offer to anyone, or a solicitation by anyone, to make any investments in securities. Such offer will only be made by means of a personal, confidential memorandum. This document should not be construed as a research report. The content of this document has not been audited or reviewed by any regulatory authority in Hong Kong, Singapore or elsewhere. All information contained in this document is subject to copyright with all rights reserved. Investing involves Risk You should remember that the value of investments can go down as well as up and is not guaranteed. Past performance is not a guide to future performance and may not be repeated. The actual performance realised by any given investor depends on, amongst other things, the currency fluctuations, the investment strategy invested into and the classes of interests subscribed for the period during which such interests are held. Emerging markets refer to the markets in countries that possess one or more characteristics such as certain degrees of political instability, relative unpredictability in financial markets and economic growth patterns, a financial market that is still at the development stage, or a weak economy. Respective investments may carry enhanced risks and should only be considered by sophisticated investors. No Liability This document is intended for information and discussion purposes only and is not intended to be promotional material in any respect. Information contained herein is believed to be reliable, but Silverhorn does not warrant its completeness or accuracy. Nothing contained in this document constitutes financial, legal, tax, investment or other advice, nor should any investment or any other decisions be made solely based on this document. This document does not provide any advice or recommendation as to whether any securities or investment strategy referred to in this document is suitable for the intended recipient. Although all information and opinions expressed in this document were obtained from sources believed to be reliable and in good faith, no representation or warranty, express or implied, is made as to its accuracy or completeness and no liability is accepted for any direct or indirect damages resulting from or arising out of the use of this information. All information as well as any prices indicated are subject to change without notice. Any information on asset classes, asset allocations and investment instruments is only indicative. Before entering into any transaction, investors should consider the suitability of the transaction to their own individual circumstances and objectives. We strongly suggest that you consult your independent advisors in relation to any legal, tax, accounting and regulatory issues before making any investments. Third-party data This publication may contain information obtained from third parties, including but not limited to rating agencies such as Standard & Poor’s, Moody’s and Fitch. Reproduction and distribution of third-party content in any form is prohibited except with the prior written permission of the related third party. Silverhorn and the third-party providers do not guarantee the accuracy, completeness, timeliness or availability of any information, including ratings, and will not be responsible for any errors or omissions (negligent or otherwise), or for the results obtained from the use of such content. Third-party data are owned by the applicable third parties and are provided for your internal use only. Such data may not be reproduced or re-disseminated and may not be used to create any financial instruments or products, or any indices. Such data are provided without any warranties of any kind.

bottom of page