Kwon Tae-shin, Former Vice Chairman of FKI, "US and China Must Cooperate to Restore World Order"

Kwon Tae-shin, Vice Chairman of the Federation of Korean Industries

[Asia Economy Reporter Changhwan Lee] Kwon Tae-shin, Vice Chairman of the Federation of Korean Industries (FKI), urged the United States and China to move beyond their current conflict and demonstrate global leadership through cooperation.

Vice Chairman Kwon attended the 'Global Federation of Competitiveness Councils (GFCC) COVID-19 Special Dialogue' held online on the 3rd, where he strongly called for the restoration of economic and trade order to normalize the global economy and corporate activities.

GFCC was established in 2010, led by the U.S. Competitiveness Council, to promote active policy cooperation among national competitiveness enhancement agencies of various countries. It has 60 member institutions from 35 countries, with the FKI representing South Korea.

Regarding South Korea's response to COVID-19, Kwon stated, "South Korea has generally responded well thanks to its world-class healthcare system, medical personnel, and civic awareness."

He particularly explained the secret to success, saying, "Despite being adjacent to China and experiencing a rapid spread of COVID-19 with the second highest number of confirmed cases after China in the early stages, South Korea became a model country in COVID-19 response based on accumulated learning experiences from the MERS and SARS outbreaks, the public's habitual mask-wearing awareness, and a healthcare insurance system with about 20% out-of-pocket expenses."

Vice Chairman Kwon emphasized, "The most urgent matter is the swift normalization of global trade and the movement of personnel, which have been halted due to COVID-19," adding, "The spread of protectionism after COVID-19 and recent signs of a renewed U.S.-China trade war are expected to have a significant impact on the Korean economy, which is very concerning."

In the current crisis where global trade conflicts are restarting alongside the shock of COVID-19, Vice Chairman Kwon strongly urged the leadership of the U.S. and China as G2 powers and the restoration of a cooperative global order.

He diagnosed the current situation by noting that even before the COVID-19 outbreak, nationalism prioritizing national interests?such as the U.S.'s America First strategy, the UK's Brexit, and China's Belt and Road Initiative?was prevalent, and the added impact of COVID-19 threatens the cooperative international order built over the past 80 years.

He strongly requested, "Now is the time for the United States to act as the guardian of the international order, and for China to behave as a responsible nation, having grown under the World Trade Organization (WTO) system."

He also emphasized, "The world must work together to strengthen multilateralism and international cooperation systems, such as the WTO and the International Monetary Fund (IMF), and especially to enhance the neutrality and expertise of the World Health Organization (WHO) through reinforced functions."