Hosting an innovative APEC (Part 1: Shenzhen as a polycentric functional hub)

[This is the first of a series of articles discussing the exciting role China can play as the host of APEC this year. The author will analyse and suggest that, as host of the APEC meeting this November, China should jump-start a new era of global cooperative innovations, in which discussions will be transformed into actions. Shenzhen and the Greater Bay Area will become its hub. ]

Introduction

2026 is a year in which the world is mired in uncertainty. Instead of polaristic stability, the global order is undergoing fragmentation. This is a very dangerous situation. 

At the same time, this transformation presents opportunity to usher in an innovative future for relations among nations, a new model of peaceful coexistence.

When we speak of an innovative future, we do not just mean technological advances. We foresee a new era in which China will play a significant role in fostering regional cooperation, across a spectrum of socio-economic functions,in an innovative way.

To this end, Shenzhen should create multiple developmental centers to provide services and opportunities for its APEC fellow members, facilitating concrete results and businesses. This will lay a foundation for a transnational, non-governmental and non-partisan Community with a Shared Future for Mankind (CSFM, 人类命运共同体). It will showcase a new form of world order — a way forward for people to enjoy a destiny of peace through development.

A Pacific century — dialogue of cooperation

Let us first put things into historical perspectives.

Asia Pacific Economic Cooperation (APEC) was founded in 1989 by 10 economies in Asia Pacific (Australia, Brunei Darussalam, Canada, Indonesia, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand and the United States), in an attempt to better their ties and relationship with the ASEAN countries. It was a recognition that the future growth potential of the world would lie in the region. 

With the Cold War ending, China joined APEC in 1991, boosting its momentum. 

After 37 years, APEC today is the highest level collective forum for Asia Pacific national leaders and government ministers. With a total membership of twenty-one economic entities, its influence on the scope and depth of Asia Pacific economic cooperation is unrivalled.

The Asia Pacific region spans half the globe. Today, it has one-third of the world's population, 60% of global GDP and 50% of its trade. Since China joined APEC in 1991, the region has undergone tremendous growth. Today, it represents the world's main economic growth engine. There is a general consensus that the twenty-first century will be a Pacific Century. 

With APEC, leaders and ministers gather periodically to exchange views and ideas, feel each other out in informal talks. They would leave no records or documents, save for a joint statement at the end to reflect the consensus at the time. In essence, they gather to air their views, publicly and privately, while attempting to build personal rapport with fellow leaders, which can be very worthwhile. They can be frank and candid with each other, while remaining flexible.

As such, APEC was a very good idea at its onset. With the history of the Cold War not totally behind them, it was wise for leaders of unequal strength and status to gather, in apparent equality, and communicate without any binding commitment. Today, with China and an expanded membership, APEC is a highly representative gathering of leaders in a relaxed atmosphere. It offers precious opportunities which should now be transformed into actions and results.

Transforming APEC — from dialogue to action

As it matures, APEC's functional potential has grown.

As the leaders of APEC nations gather in Shenzhen this November, China should take concrete steps to steer the members beyond just a forum for dialogue. Shenzhen should begin to build a polycentric functional hub for business and non-business organizations in the Asia Pacific region.

By polycentric, we mean multiple flexible groupings of participating members, voluntarily and without pre-set heirarchy, into various circles, each serving specific functions and needs. In other words, a nation or economic entity may choose to participate in one functional circle, but not another. Several nations may form a new functional circle to address certain needs, others may choose to join, while others do not. Governments may be represented to enhance these functional circles' effectiveness and efficiency, but participants are mainly businesses and civic groups, registering individually, and not acting as agents of governments in an official capacity,  

These circles may overlap to a certain degree. They should be inter-active and coordinated within the overall APEC framework, while independently performing their individual work. China should act as an organizer by providing a Comprehensive Systems Approach for the circles to function with efficiency and effectiveness.

Under a Comprehensive Systems Approach (which will be discussed in more detail in another article), each of the polycentric groupings will be able to take into account the following interactive variables in an integrated fashion:

1. Economic and financial,

2. Environmental and demographic,

3. Technological and industrial,

4. Political and social,

5. Cultural and informational. 

When these functions are coordinated systematically, practical accomplishments will result. That is the envisioned “innovative APEC”. We are speaking here of APEC in a functional sense, that is to describe the region engaged in actual economic cooperative activities, with Shenzhen and its regional partners leading the way, as distinct from APEC the formal organization, the diplomatic discussion forum which should now lead to the realization of functional innovations.

Planning for November and beyond

Shenzhen should prepare well in advance of the official November forum. From now through November and beyond, it should host an unprecedented international gala of activities across a spectrum of business gatherings and expositions. With its Bay Area sisters, Shenzhen should put on a show of the future.

By November, in Shenzhen, APEC will not only be a meeting of leaders and ministers, but also a facilitator of non-governmental business affairs. China will promote interactions and transactions among people in the region, and demonstrate the shared benefits of polycentric cross-border cooperation, instead of confrontation between polaristic blocs of nations.

As such, successful cooperation and harmonious relations among Asia Pacific nations will bring relatively sustainable peace and prosperity for mankind.

In addition, Shenzhen and the Bay Area will be permanent hub providing ongoing systems management services for APEC businesses and development. 

When participants leave the APEC gatherings, they will carry with them a slogan: “To get things done！Go to Shenzhen!”

And they will be back, many many times.