China and the Liberal International Order: A Model for Papua New Guinea?

The rise of China as a global economic and political power is one of the most significant developments in contemporary international relations. What makes this rise particularly intriguing is that China, a communist state, has successfully navigated the liberal international order—an order primarily established and championed by Western democracies. In doing so, China has harnessed the rules of global trade, finance, and multilateralism to its advantage, demonstrating a pragmatic approach to development that challenges traditional ideological divides. This is a lesson Papua New Guinea (PNG) should consider as it seeks to accelerate its own economic and political transformation.

China's rapid urbanization and infrastructure boom—symbolic of its strategic use of state-led development within the liberal international order. Papua New Guinea can draw valuable lessons from this pragmatic approach to economic growth.

The liberal international order, characterized by open markets, international institutions, and norms of global governance, was designed to promote economic interdependence and cooperation among states. While this order has generally favored democratic nations, China has adeptly worked within it to achieve its national objectives. Its accession to the World Trade Organization in 2001 marked a turning point in its economic ascent, embracing market reforms and global trade while maintaining strict political control. Unlike other developing nations that were pressured into adopting Western-style democracy, China has proven that economic success does not necessarily require political liberalization.

Unlike many countries that fully embraced neoliberal policies, China retained strong state control over key industries while selectively opening its market to foreign investment. The government strategically guided economic growth through industrial policy, infrastructure development, and technology transfer, outpacing many democratic nations in key sectors. By ensuring that state-owned enterprises remained competitive while allowing limited private sector engagement, China created a hybrid economic model that has driven sustained growth and global influence.

China has expanded its influence by actively participating in international institutions such as the United Nations, the World Bank, and the International Monetary Fund. However, it has also created its own parallel structures, such as the Asian Infrastructure Investment Bank and the Belt and Road Initiative, to shape global economic governance according to its interests. Through investments in research and development, China has become a leader in high-tech industries, from artificial intelligence to 5G networks. It has strategically acquired knowledge through foreign partnerships, intellectual property transfers, and an education system that prioritizes STEM fields.

China has also effectively used soft power to build alliances across the Global South, particularly in Africa, Asia, and the Pacific. Its development assistance, trade partnerships, and educational exchanges have strengthened its global position without relying on military interventions or coercion. These efforts have helped China cultivate strong economic and diplomatic ties, making it an indispensable player in global affairs. The ability to balance economic dominance with strategic diplomacy has positioned China as a formidable force in world politics.

PNG can draw important lessons from China’s pragmatic approach to development. Unlike many developing countries that have remained trapped in ideological debates between democracy and authoritarianism, China has prioritized national development over ideological conformity. PNG should adopt a pragmatic economic policy that prioritizes national interests rather than aligning with ideological blocs. This means leveraging opportunities from both Western and non-Western partners while maintaining sovereignty over its economic policies.

While embracing foreign investment, PNG must ensure that key industries such as natural resources, infrastructure, and technology remain strategically managed by the state to maximize national benefits. China’s rise was fueled by heavy investment in education, technology, and human capital. PNG must prioritize similar investments, particularly in higher education and skills development, to create a workforce that can compete in the global economy. PNG should actively engage with international institutions while also exploring regional partnerships that offer greater autonomy in decision-making. Participation in China-led initiatives such as the Belt and Road Initiative should be weighed against the long-term national interest. Infrastructure development has been central to China’s growth, and PNG must establish a long-term industrial policy that includes state-supported infrastructure projects, renewable energy, and digital transformation.

China’s ability to navigate and manipulate the liberal international order to its advantage is a testament to its strategic vision and pragmatic policymaking. While PNG’s context is vastly different, the underlying lesson remains the same: development should not be constrained by ideological divides. PNG must take a pragmatic approach, forging economic policies that serve its national interests while engaging with multiple global partners. By doing so, PNG can accelerate its development trajectory and assert itself more confidently in international affairs.