LocationsRemarks by Ms Beate Trankmann at 2025 Beijing “Two-Zone” Construction & Corporate Globalization Forum
September 12, 2025
UNDP Resident Representative in China, Beate Trankmann, delivered a speech at the 2025 Beijing “Two-Zone” Construction & Corporate Globalization Forum (CIFTIS)
Esteemed Henri Wang, President of the Center for China & Globalization, Ladies and Gentlemen,
On behalf of the United Nations Development Programme (UNDP) in China, it’s my great pleasure to join you today at the 2025 Beijing “Two-Zone” Construction & Corporate Globalization Forum – part of this year’s China International Fair for Trade in Services.
CIFTIS has become one of the world’s leading platforms to discuss not only the expansion of services trade, but also the broader transformations shaping the global economy.
As such, in my remarks today, I thought it would be useful to explore the topic of green development and digital innovation in the context of a rapidly evolving trade landscape – as opportunities to advance broader, collective efforts for sustainable development.
Trade has long been a cornerstone of economic development across Asia and the Pacific, establishing shared global value chains and paving the way to economic prosperity. In 2023, trade in goods and services constituted, on average, 54% of the GDP of the entire region [i]. For some countries – like Singapore, Vietnam, or Malaysia – the combined value of exports and imports even exceeded their GDP by a considerable margin.
Albeit less the case for China, given is massive domestic market, trade was still 37% of China’s GDP last year.
These numbers demonstrate that for decades, trade has gone hand-in-hand with economic growth and human development.
Nonetheless, this trade-intensive development model is now increasingly under strain. We all have seen the recent changes in the trade policy environment, and the steep increase in tariff rates worldwide:
Between October 2024 and May 2025, the value of global imports subject to import restricted policies surpassed 2 trillion USD. For comparison, it was 164 billion USD in 2022 [ii] - more than a ten-fold increase in just two years.
For a region that depends heavily on open markets and global value chains, this increased volatility, and fragmentation can have a significant impact on sustainable development.
Fortunately, while trade is an important driver of development, it is not the only one.
China’s own economic evolution is a good example. Trade has been instrumental in its remarkable development over the last several decades. However, with the Government’s recent focus on high-quality green growth and innovation, China’s future development will rely increasingly less on the volume of goods and services exchanged. Instead, it will be critical to look beyond GDP, prioritising human well-being, environmental sustainability, and inclusivity.
This is precisely the perspective that UNDP has advanced for more than three decades through our Human Development Index. The HDI has demonstrated that progress cannot be measured by income alone.
More recently, the Planetary-adjusted Human Development Index, or PHDI, has also highlighted the need to take into consideration our material and carbon footprint. When accounting for planetary pressures, the human development index is consistently lower. This further strengthens the economic argument that a transition toward green development is not only urgent to protect the environment– but also an opportunity for countries to establish new pathways towards prosperity.
Globally, achieving net zero requires an estimated annual investment in clean energy of over 4 trillion USD by 2030 [iii]. China is playing a critical role in this shift: in 2024 China’s clean energy investment was more than 625 billion USD, almost doubling since 2015 [iv]. Clean technologies ultimately contributed more than 10% of China’s increase in GDP in 2024 [v] – demonstrating that the green transition can and should go hand in hand with economic growth.
"Neither the green transition nor the governance of artificial intelligence can succeed, if efforts to realize them occur only within national borders alone. These are challenges and opportunities that transcend countries, sectors, and institutions."
Ladies and gentlemen,
At this point, allow me to transition to talking about another elephant in the room: the rise of digitalization and artificial intelligence. As we gather today, AI is rapidly reshaping the world we live in.
The question before us is not whether AI will advance, but how it can do so in ways that support sustainable development, enhance the green transition, alongside people’s prosperity and wellbeing.
On one hand, AI has the potential to provide huge productivity gains, service improvements, and great advancements on climate mitigation and adaptation efforts, as well as health and education. Looking at the service sector in particular, AI could further democratize finance and commerce across the Asia-Pacific, through the mainstreaming of AI-driven credit for the unbanked, helping to close financial gaps for small and medium enterprises – the backbone of many Asia-Pacific economies.
On the other hand, if access to AI and other technologies remains uneven, it will lead to heightened inequality. This will occur both within countries, with the expansion of digital divides along gender and urban/rural lines, and between countries.
AI is not inherently neutral. It is a tool whose benefits will depend on how it is governed, who has access, and whether it is applied in a way that helps to reduce inequalities or works to deepen them.
It comes down to a matter of choice.
And this is where the global community, and platforms like CIFTIS, can play an important role. The discussions held at forums like this one can help inform the design of new digital technologies and drive the deployment of AI that is responsible, ethical, and sustainable.
At UNDP, we are working precisely at this frontier. Globally and in China, we are supporting governments and partners to harness digital technologies for climate resilience, inclusive growth, and human-centred development. Whether through pilots on AI for disaster preparedness, partnerships on just energy transitions, or dialogues on the ethics of emerging technologies, our aim is the same: to leave no one behind and ensure that innovation serves people, not the other way around.
This perspective is also reflected in our flagship 2025 global Human Development Report, which explores the implications of the rise of AI on sustainable development, and the importance of making sure that technologies enhance people’s capabilities rather than replace them.
As we reflect on the future of trade in services and of development more broadly, the lesson is clear. Trade remains a driver of growth, but the model of growth is shifting. What matters is not only the volume of exchanges, but their content, their quality, and their contribution to human well-being. Green development and digital innovation are not side issues – they make up the foundation of the new trade landscape.
With that, I want to express my sincere thanks to the Center for China and Globalization (CCG) and the Beijing “Two-Zone” Office, for inviting me to speak today and let me conclude with a call for cooperation:
Neither the green transition nor the governance of artificial intelligence can succeed, if efforts to realize them occur only within national borders alone. These are challenges and opportunities that transcend countries, sectors, and institutions. International cooperation is therefore essential – whether in setting standards, sharing technologies, or mobilizing finance.
For UNDP, this cooperation lies at the heart of our mandate. We look forward to working with our partners and all stakeholders to support transitions toward models of development that are sustainable, inclusive, and centred on people.
Thank you.
[1] UNDP, “Disruption, Diversification, and Divergence. ADAPTING DEVELOPMENT STRATEGY TO A SHIFTING TRADE LANDSCAPE IN ASIA AND THE PACIFIC”, August 2025, p. 3
[2] UNDP, “Disruption, Diversification, and Divergence. ADAPTING DEVELOPMENT STRATEGY TO A SHIFTING TRADE LANDSCAPE IN ASIA AND THE PACIFIC”, August 2025, p. 9
[4] https://www.iea.org/reports/world-energy-investment-2025/china
[5] https://energyandcleanair.org/analysis-clean-energy-contributed-a-record-10-of-chinas-gdp-in-2024/
