Report on the Work of the Government (2025) proposed to "stabilize the development of foreign trade" and put forward specific measures from the aspects of "strengthening the efforts of stabilizing foreign trade policies", "cultivating new growth points such as green trade and digital trade" and "supporting the development of new offshore trade in places with conditions". At present, digital technology is increasingly integrated into all fields and the whole process of economic and social development, and continues to expand the space and potential of economic development. In the face of a more complex external environment in the future, from the Chinese market to the global market, "Made in China" must accelerate to "Intelligent manufacturing in China" leap. To this end, this issue of Theoretical Research invitesEdmund Li Sheng, distinguished Professor of Shandong University and Executive Dean of the InstituteofSCO Studies, to explore in depth how digital technologies can promote regional economic cooperation, regional economic integration and high-quality development.
Edmund Li Sheng, a Distinguished Professor at Shandong University, Executive Dean ofthe Institute of SCO Studies, and Honorary Professor of the China-SCOInstituteof Economics and Trade. He has been engaged in international political economy and tourism city governance research for a long time, and has published more than 100 papers in international academic journals in related fields.
First mentioned the "new type of offshore trade", and steadily expanding institutional opening-up
Financial News: The 2025 Government Work Report first mentioned the "new type of offshore trade" and made specific plans for "deepening multilateral, bilateral and regional economic cooperation". What role do you think digital technologies (such as big data, artificial intelligence, blockchain, etc.) play in regional economic cooperation? Can you give an example of how digital technologies can break down geographical constraints and promote efficient allocation of resources and collaborative development?
Edmund Li Sheng: In the 2025 Government Work Report, it is mentioned that we should "actively promote the accession of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and other high-standard economic and trade agreements, take the initiative to compare the relevant rules, regulations, management and standards, and steadily expand the institutional opening up." In my opinion, in the face of the current difficulties in global economic governance, institutional openness aims to achieve international coordination between institutional standards and governance systems, which covers two aspects: First, take the initiative to align internationally accepted rules and standards; Second, promote the reform of the global economic governance system through institutional and conceptual innovation, so that China can become a responsible supplier of public goods in the region, provide solid legal, policy and institutional guarantees for all kinds of cross-border economic activities, and make market access, investment environment and trade rules more transparent and stable. "New offshore trade" is emerging in this system environment, and its goods transactions do not involve China's first-line customs or are not included in customs statistics. Comparing with the traditional model, it uses digital technology to deeply integrate with new business forms such as cross-border e-commerce and digital trade, breaking through geographical and time constraints, and achieving more efficient and lower cost cross-border transactions.
In recent years, the digital technology revolution with big data, cloud computing and artificial intelligence as the core driving force has flourished, the proportion of digital trade in global service trade has continued to rise, and digital resources have become an important factor of production in the current era. In regional economic cooperation, digital technology is the core engine to promote institutional openness, building a "digital bridge" for regional cooperation, loosing the constraints of geographical space on factor flow, improving information transparency and flow efficiency, and reducing the risks and costs caused by information asymmetry. At the same time, the precise matching of supply and demand has promoted the deep integration of finance, supply chain and other fields, realized the effective allocation of resources and markets, and promoted the leap-forward development of regional economic cooperation.
For example, I have done research on the China-Europe freight train. There are problems of poor alignment of rules and regulations along the routes in terms of infrastructure, logistics efficiency and cooperation standards, which restricts the operation capacity of the train. But with the widespread embeddedness of digital technology, these problems are effectively solved: The application of blockchain technology has built a safe and efficient information sharing platform for China-Europe freight trains, connecting the train operation department, railway transportation department, customs inspection department, freight forwarders, banks, shippers, recipients and other participants, promoting the safe sharing of information such as logistics and transportation process, shipper credit investigation, financing status and so on, and greatly simplifying the transportation process. Reduced transportation costs and increased trust between parties. At present, the Shanghai Cooperation Organization (hereinafter referred to as "SCO") is also actively exploring the application of digital technologies in regional development. For example, the Shanghai Cooperation Economic and Trade comprehensive service platform is the first to "one single and two reports" of the customs declaration of Russian ports, and builds a trusted cross-border service alliance network based on blockchain technology. The network forms a digital "alliance one single" by virtue of the multi-signature, backup, cross-verification and immutable characteristics of the blockchain, ensuring the uniqueness, authenticity and originality of logistics trade. It will help build an international logistics, trade and financial ecosystem.
Challenges and bottlenecks of regional economic cooperation in digital empowerment
Financial News: What are the major challenges (such as data sharing barriers and inconsistent technical standards) facing regional cooperation in digital economy? How can these challenges be addressed to further unlock the potential of digital technologies?
Edmund Li Sheng: I think the digital divide in infrastructure, technical standards and data governance is a major challenge for all countries in the process of promoting regional economic digital cooperation. First, the uneven level of digital infrastructure development among countries has severely restricted the impetus for digital economic cooperation. According to the International Telecommunication Union's 2024 report, nearly one-third of the world's population is still not connected to the Internet, mainly in low-income countries and regions. Due to economic constraints, the network coverage, cloud computing services and data center layout of these countries and developed countries lag far behind. Taking the SCO member states as an example, the digital infrastructure of Central and South Asian countries lags far behind that of China, Russia and other core members, which seriously restricts the promotion and application of new technologies and exacerbates the imbalance in global economic development.
Second, the fragmentation of technical standards and rules hinders the efficient integration and utilization of resources and information in the region. Different countries have different interests in data privacy protection, information security and distribution of business interests, and there is a lack of uniformity in digital product taxation, electronic payment standards, communication protocols and other rules, which makes it difficult for countries to build digital platforms and regional cross-border system connectivity, which may affect the overall efficiency of digital economic cooperation.
Third, in terms of data governance, countries have different positions and policies, technology pioneer countries tend to build a free flow of data order to consolidate digital hegemony, while developing economies are more concerned about data security and privacy protection. For example, the United States-Mexico-Canada Agreement (USMCA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) contain provisions supporting cross-border data flows, while the Regional Comprehensive Economic Partnership (RCEP) allows for cross-border data flows while giving parties the right to impose controls based on national security. This reflects the power game that regional countries are facing in the process of advancing digital cooperation.
Digital technologies have great potential in regional economic cooperation, and countries need to take a comprehensive approach to remove barriers. First of all, regional digital development funds should be established to increase investment in digital infrastructure in countries that are lagging behind in technology, optimize the regional allocation of computing resources, and create an environment for balanced development. Second, we need to strengthen cross-border digital collaboration and technology exchange, promote synergy between laws, regulations and regulatory standards through regular policy dialogue and multilateral cooperation, align with international high standards, and build an open and compatible digital platform system. Finally, improve the digital governance coordination mechanism, establish a unified data sharing and privacy protection mechanism, formulate transnational data governance norms, clarify data flow and utilization standards, break information silos, promote efficient resource integration, and promote regional cooperation deeply embedded in the global digital governance system.
The role of Government in digitally empowered regional economic cooperation
Financial News: What role should governments play in promoting digitalization cooperation in the regional economy? What policies or measures are currently supporting the digital transformation of regional economic cooperation?
Edmund Li Sheng: Today, technology giants are gradually penetrating the national governance system through their technology and market influence, reshaping the pattern of state-centered international relations, and have become a new type of power subject with geopolitical influence. When interpreting the role and function of the government in the digital cooperation of the regional economy, ignoring these large technology companies may cause a certain degree of strategic miscalculation. Based on this change, from the domestic level, the government is no longer a single regulator in the platform economy, but more of a strategic partner and digital ecological incubator. On the one hand, it relies on large platform companies to achieve political and economic goals, such as promoting national strategies such as the digital economy and the "One Belt, One Road" initiative; On the other hand, we will strive to promote new breakthroughs in core technologies in key fields such as supercomputers, satellite navigation, and artificial intelligence, so as to provide a solid guarantee for industrial digital transformation and overall digital upgrading of the region. At the regional level, governments are also indispensable digital policy coordinators and regulators. As a coordinator, the government promotes the integration of the regional digital market by negotiating digital policies, unifying rules and standards, and building a regional cooperation framework. As a regulator, the government has passed legislation to limit the data monopoly of large platform enterprises, such as the EU's Digital Market Act to strengthen the data use and privacy protection supervision of technology giants, and the People's Republic of China's Cybersecurity Law stipulates the domestic storage of key data to prevent the phenomenon of "data colonization".
At present, global governance is sinking to the regional level, and countries are actively promoting the digital transformation of regional economic cooperation through policy coordination. In the Asia-Pacific region, China signed memorandums of understanding with several ASEAN countries to strengthen investment cooperation in the digital economy, and included a special chapter on the digital economy in the 3.0 version of the China-Asean Free Trade Area. In the Eurasian region, China has deepened regional digital cooperation through policy arrangements and platform building, promoted the signing of documents such as the Concept of Cooperation among SCO member States on Digitization and ICT, the Statement of the Council of Heads of SCO Member States on Cooperation in the field of Digital Transformation, and established a working group on digital economy. Set up specialized organizations such as big data cooperation centers and big data sharing and exchange hubs; In the Global South, the 14th BRICS Leaders' Meeting signed the first special document on digital economy cooperation, the Framework of BRICS Digital Economy Partnership, which covers digital authentication, electronic payment and artificial intelligence, indicating the future direction and key areas for BRICS cooperation in the field of digital economy.
New opportunities for synergy in scientific and technological innovation
Financial News: Digital technology drives scientific and technological innovation. Taking the SCO as an example, how can member states carry out collaborative innovation in cutting-edge technologies such as artificial intelligence and big data? In the process of innovation cooperation, how to realize the sharing of scientific research resources and complementary advantages?
Edmund Li Sheng: In the macro context of global digital transformation, the SCO has also established digital cooperation as a cutting-edge cooperation agenda and strategic priority, and China has always been a mainstay of the SCO's digital cooperation. Last year, I had the honor to participate in the SCO Youth Exchange Camp. When I accompanied foreign representatives to visit the SCO Clearwater Bay Digital Agriculture Demonstration Park, the Helkaos Ecological Experience Center, the Qingdao Port Automation Terminal and other innovative scenes, several delegations expressed their willingness to sign business incubator cooperation under the SCO framework. This year is the Year of Sustainable Development of the SCO. On this special occasion, the member states' innovative cooperation in the field of cutting-edge technologies will continue to attract attention.
In the future, the member states can mainly promote collaborative innovation from the dual track of "system support" and "platform construction". At the level of institutional innovation, efforts should be made to improve the institutional framework support, on the basis of the existing documents such as the Concept of Cooperation among SCO member States on Digitization and ICT and the Statement of the SCO Heads of State Council on Strengthening cooperation in the field of scientific and technological innovation, and improve the management mechanism of the whole process of joint research projects as well as launching the meeting mechanism of heads of ICT departments. At the level of platform construction, it is necessary to create an innovation ecological chain of "personnel training, scientific research and achievement transformation", deepen the exchange of experience and knowledge in the field of digital economy by relying on the SCO University, jointly set up transnational research and development centers and laboratories, and jointly carry out joint research and project cooperation in the field of digitalization, innovation and information and communication technology. At the same time, regular dialogue mechanisms and cooperation networks should be established through regular organizing of the China-SCO Forum on Digital Technology Innovation and Development and holding international cooperation exhibitions.
As for how to realize resource sharing and complementary advantages, I think we can start from two directions. First, build on China's first-mover advantage in fifth-generation communication technology (5G), big data, artificial intelligence technology and other fields to promote digital infrastructure connectivity. The projects invested by China, such as the cross-border optical cable between China and Uzbekistan and the international data channel between China and Russia, have effectively improved the efficiency of regional data transmission and systematically promoted the construction of regional digital bases. Second, continue to give full play to the institutional innovation advantages of the Shanghai Cooperation Demonstration Zone and strive to promote the sharing of digital achievements. At present, the Shanghai Cooperation Economic and Trade integrated Service Platform launched by China has included domestic and foreign trade enterprises, integrated enterprises, banks, logistics enterprises, foreign trade associations, cross-border e-commerce, domestic agent enterprises and some foreign government departments, etc., providing intelligent statistical analysis and visual dynamic presentation of Shanghai Cooperation trade data in multiple dimensions. It will effectively promoted the exchange, query and traceability of trade data and financial information in the whole region.
Trends and prospects of regional economic cooperation in digital empowerment in the future
Financial News: How will digital technologies deepen regional economic cooperation in the future? Under the new development pattern of "double cycle", what are the new opportunities and directions for regional economic cooperation with digital empowerment?
Edmund Li Sheng: In the new round of technological revolution, the upgrading and iteration and wide application of digital technologies such as big data, blockchain and artificial intelligence not only gave birth to a new form of digital economy, but also provided impetus for the digital transformation of the global value chain. In my opinion, the key value of digital technology for regional economic cooperation lies in promoting the deep integration of industrial division of labor by reshaping the value chain, improving economic efficiency while reducing transaction costs, and then deriving a digital regional economic ecosystem. In addition, the embedding of digital technology has also brought about structural innovation in the paradigm of regional economic cooperation, giving rise to new models such as "digital corridor", "digital economic belt" and "digital pilot zone", thus building a new cooperation framework characterized by cross-border data flow, digital rules coordination, and intelligent infrastructure interconnection, injecting new vitality into the regional economy. Of course, this also forces governments to accelerate the reform of cross-regional data standards and build institutional guarantees for regional economic cooperation.
Under the new development pattern of "double cycle", I believe that high-end manufacturing, network technology and green industry will have great potential in regional economic cooperation in the future. High-end manufacturing industry is the core of the national industrial chain upgrading, with the deep integration of a new generation of digital technology and advanced manufacturing technology, with the independent research and development and production of core technologies and key components, it can effectively reduce the dependence on external technologies and markets, and enhance the overall anti-risk ability and market competitiveness of the industry in the region. Network technology is the cornerstone of the digital economy, and the improvement of digital infrastructure helps to break the information islands between regions, achieve the efficient integration of technology, talent and capital inside and outside the region, and improve cross-regional business collaboration and service efficiency. Green industry is an important direction to promote high-quality economic development, and the wide application of digital technology in it, such as the accurate management and regulation of energy data through digital platforms, helps to promote green transformation in the region and build a sound regional green ecosystem.
(Pictures:紫藤)
