By Tom Pauken II.
BEIJING: Amid the rapidly changing world order and international economic conditions, China and other Global South nations, are jointly formulating new international finance architecture that stands set to deliver win-win benefits for all parties involved.
Such themes were highlighted at the 2025 Global South Financiers Forum, which was held in Beijing recently.
The main forum of the 2025 Global South Financiers Forum took place in Beijing on March 20, with the theme of "Illuminating Global South." (Xinhua/Li He)
High-level representatives speaking on behalf of the finance ministries and central banks of Global South countries, along with senior executives of major Chinese and international banks had delivered keynote addresses to an audience of an estimated 400 people.
The main issues discussed were the latest trends of digitalization in the fields of banking, finance and payments’ systems. Speakers also emphasized a new drive to provide more inclusive financing for the people and local communities, whom have been largely ignored by traditional banks, since they struggle with impoverished circumstances and lack capital resources to launch new enterprises.
Hence, central bankers of the Global South hope to boost micro-finance, while also tapping into support from China to inject more momentum into the emerging markets of the Global South by revitalizing their respective national finance sectors.
Shyam Prasad Bhandari, joint secretary of Nepal's finance ministry, explained how China has played a crucial role in his nation’s economy and how Chinese fin-tech industry has supported Nepal’s banking sector in efforts to succeed with its nationwide “digital finance conversion.”
“Nepal’s key economic objectives are to support modernization and to boost the domestic services sector,” said Bhandari at the sidelines of the forum. He noted that China has enhanced his country’s economic expansion with deeper investments into Nepal’s agriculture, energy and tourism sectors.
Additionally, Nepal is fortifying the domestic hydro-power industry by building new dams and this increases energy supply for all Nepalis and this in return has strengthened the country’s digital finance conversion. Chinese companies have also delivered positive outcomes with Nepal’s digital transformation.
Chinese enterprises and investors have promoted Nepal’s “e-payments, mobile banking and EFTs (electronic funds transfers),” said Bhandari. China has supported Nepali banks and finance firms go digital by delivering much-needed “equipment and tech support.”
China is forging ahead as one of the world leaders in science and hi-tech innovation, while digital banking and payments systems are the new normal in China. Global South nations can create partnerships with China to embark on their respective digital finance conversion drives.
The China proposed Belt and Road Initiative (BRI) is improving finance in the Global South, while supporting the development of the Asian Infrastructure Investment Bank (AIIB). The AIIB offers financing, such as loans, grants, and investment tools for companies and investors to support joint projects on infrastructure with Global South nations.
The BRI and AIIB stepped into the Global South to set up new finance mechanisms and this success story has translated into more robust economic growth for many countries.
Inayat Hussain, executive director of the State Bank of Pakistan, delivered his keynote address at the 2025 Global South Financiers Forum and reiterated how China has lent a helping hand to his country by jointly building the China-Pakistan Economic Corridor, which is a flagship project under the framework of the BRI.
“The current challenges confronting Pakistan are higher inflation rates and tariffs and rising trade protectionism,” Hussain said. “But the BRI is a global initiative where China is helping with development of the Global South and the AIIB is playing a key role in Global South finance.”
Therefore, China has emerged as a vital player of the international banking and finance community.
And despite the new wave of changes and uncertainties in the world, China can withstand the storms and tribulations to sail ahead on brighter horizons.
Global South countries can reaffirm their partnerships with China in order to march forward by implementing a new international finance architecture that will reinvigorate a shared prosperity for our world.
