Australian former diplomat stresses multilateralism for Asia-Pacific's sustained development

Maintaining an open, rules-based trade framework is essential for sustaining economic growth and cooperation in the Asia-Pacific region as unprecedented pressure on the multilateral trading system mounts, said Dr. David Morris, former Australian diplomat and vice chair of the UN Asia Pacific Sustainable Business Network.

Morris made the remarks via video link in an interview with China Global Television Network (CGTN) in response to a five-point proposal put forward by Chinese President Xi Jinping on Friday during the 32nd APEC Economic Leaders' Meeting in Gyeongju, the Republic of Korea (ROK).

In his proposal, Xi emphasized the importance of upholding genuine multilateralism and fostering an open economic environment across the Asia-Pacific, calling for joint efforts to safeguard the multilateral trading system.

He urged APEC members to practice true multilateralism, enhance the authority and effectiveness of the multilateral trading system with the World Trade Organization at its core, and update international economic and trade rules to reflect the changing times, so as to better protect the legitimate rights and interests of developing countries.

According to Morris, the proposal is a timely answer to rising protectionism and geopolitical tensions.

"The multilateral system, the trading order, and the entire international system are under a lot of stress at the moment. There are such changes happening in the world, and the utmost importance of upholding the multilateral system is front and center, I think, for most people around the world, certainly for businesses and for people, for society as well as for governments," said the former diplomat.

In this challenging context, the importance of a stable and open trading system becomes even clearer for key regional players like China and Australia. Both countries have greatly benefited from decades of economic integration and reduced trade barriers, which have driven prosperity across the Asia-Pacific.

"So, for China and Australia, this is fundamentally important: to have an open trading system to maintain what has worked so well for us in the Asia-Pacific in the last, let's face it, more than 30 years. We've had a very successful period of regional economic integration, decreasing barriers to trade and to investment. And that has served the people of the Asia-Pacific so well. So, we need to cling on to this at a time when there are protectionist pressures. There are pressures for major powers to think about their interests as coming first before others. Those of us who believe in the multilateral system really will need to make the case for why rules work and why shared goals work," Morris said.

Australian former diplomat stresses multilateralism for Asia-Pacific's sustained development

Mergers, acquisitions, and reorganizations in China's A-share market have picked up markedly since the start of the year, with deals disclosed in the first quarter up over 80 percent year on year, led by strong momentum in hard-tech sectors.

Data from Wind Information, a China financial data provider, showed that by Tuesday, listed companies had announced 829 merger, acquisition, and reorganization deals, with 224 on the ChiNext board and 94 on the STAR Market. By sector, "hard technology" sectors, represented by semi-conductor and smart manufacturing, have emerged as the most active areas.

"Hard-tech sectors typically feature rapid technological iteration, heavy research and development investment and long industrial chains, with significant economies of scale. Given these features, industrial mergers, acquisitions, and reorganizations have been a key tool for hard-tech companies to strengthen supply chain resilience and competitiveness. In addition, China's related policies, dubbed 'Six Measures for Mergers and Acquisitions,' explicitly support listed companies in carrying out mergers, acquisitions, and reorganizations around strategic emerging industries and future industries, while moderately increasing regulatory tolerance for unprofitable assets. This has created more favorable institutional conditions and a better market environment for listed companies in the hard-tech sectors to accelerate industrial upgrading and strengthen independent innovation," said Chen Jie, head of Mergers and Acquisitions Group at the investment banking division of China International Capital Corporation.

Chen also noted that the surge in mergers, acquisitions, and reorganizations has been reshaping valuation dynamics in the A-share market. As integration and synergies take time to materialize, investors are increasingly shifting their focus from short-term sentiment to long-term value based on business logic. At the same time, sustained mergers and acquisitions activity is expected to support the revaluation of leading companies.

"Through consolidation and expansion, leading A-share firms are likely to see their core competitiveness and long-term growth prospects become more evident. This will help the market better recognize their intrinsic value, offering higher valuation, and contribute to a more rational and mature valuation system overall," said Chen.

China's A-share sees mergers, acquisitions, reorganizations pick up,led by hard-tech sectors