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G20 provides spoiler alert

The non-participation of the US enabled the other G20 members to rally round a less divisive, more inclusive agenda

By DARYL GUPPY | China Daily Global | Updated: 2025-12-10 07:38
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MA XUEJING/CHINA DAILY

The G20 Summit in Johannesburg, South Africa, seems to have helped bring almost all parties back onto the right track of solidarity and coordination.

Originally established in 1999, the G20 was envisaged as a broader alternative to the G7. It was a platform for the world's major economies to try to find common positions on global economic and financial issues. But rather than including the interests of those outside the G7, the trajectory moved closer to an ongoing endorsement of G7 objectives.

The United States became so confident of this trajectory that at the most recent meeting it believed it could torpedo the functionality and undermine the legitimacy and effectiveness of the G20 by refusing to participate. Actually, the absence of the US meant that the non-G7 members had more freedom to set the agenda unimpeded by boycott and threats from the US that the summit should not adopt particular policies.

The US therefore reduced its own role in the G20 as new connections were forged and the world reorganized itself.

China's well established support and advocacy for the aspirations of the Global South played an important role in creating the environment where some development issues could be given the attention they deserved.

Working under the theme of "Solidarity, Equality, Sustainability", China continued its support for multilateral solutions based on an open world economy and the promotion of cooperative development.

The meeting in South Africa, with its focus on multilateral solutions and sustainable development, helped a lot to bring almost all parties back to a cooperative track and coordinate positions on how to solve real problems, such as how to realize a more inclusive energy transition.

South African President Cyril Ramaphosa said that his country not only sought to preserve the integrity and stature of the G20 top economies, but also was committed to ensuring that the development priorities of Africa and the rest of the Global South can find expression in the group's agenda.

This is a change that some US allies such as Australia may find a little uncomfortable. Long accustomed to following the general direction set by the US, Australia found itself with a more difficult choice this time. It could either accept the new agenda, or alienate itself from the invigorated G20 membership and promote the US agenda opposing climate initiatives and other multilateral solutions.

This time, Australia chose not to directly contest the G20 agenda, abstaining itself from overt support for the US objectives. In so doing, it may find itself aligned with China's initiatives. There is a broad policy alignment between Australia and China on clean energy, climate action and multilateral trade objectives. Australia should try to understand the details of policy implementations suggested by China and supported by the Global South members of the G20.

Australia is already actively exploring cooperation with China in green energy solutions and the G20 meeting pointed to ways these areas can be expanded.

There is also scope for greater cooperation in a united position with China on the importance of multilateral solutions and opposition to unilateral tariffs and other measures, which inhibit the operation of free trade.

The litmus test for whether the invigorated G20 has controlled the agenda will be the next meeting to be held in the US. Despite boycotting the South Africa meeting, there is a high likelihood that the US will attempt to wrest back control of the G20, turning it once again into an extended version of the G7, meeting G7 objectives.

The Johannesburg Summit placed a marker of change, supporting wider and meaningful cooperation on the management of the green energy transition, free trade and support for genuine multilateral solutions. Echoing the spirit of the foundational principles of the G20, the summit called for more global attention on issues that specifically affect low- and middle-income countries. This includes the need for financial help for their recovery efforts after climate-related disasters, finding ways to ease their debt levels and supporting their transition to green energy sources.

The challenge will be to stand by this marker and that will be made easier with the cooperative support of China and other developing countries across the G20 members endorsing the concerns of the Global South. China is already supported by other member countries that have been battered and damaged by unilateral tariffs and trade bans of the current US administration.

The joint statement at the Johannesburg Summit, which strengthened commitment to the Paris Agreement and declared support for World Trade Organization rules, is a direct rebuke of the unilateral policies of the US.

After some years of G20 stagnation, a series of China-advocated initiatives have shown the way the G20 can again make itself relevant to almost all its members, not just those, which are members of the G7. It is a victory for multilateralism, but it is just the start. More efforts are needed to support the broader inclusion of the Global South in the economic benefits of global development.

The author is an international financial technical analysis expert and a former national board member at the Australia China Business Council. The author contributed this article to China Watch, a think tank powered by China Daily.

The views do not necessarily reflect those of China Daily. 

Contact the editor at editor@chinawatch.cn.

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