The Global South has experienced notable economic growth since the 1980s, as the share of developed economies in global GDP has diminished.

Emerging markets have increased their share from approximately 15 percent to 42 percent.

In terms of purchasing power parity (PPP), these markets collectively surpassed developed economies by 2008, and by around 2020, the BRICS nations overtook the G7 economies.

Presently, the Global South comprises nearly 80 percent of the world's population and contributes approximately 40 percent of global GDP. It also accounts for 60 percent of foreign direct investment (FDI) flows and 40 to 50 percent of international trade volume.

This substantial economic influence affirms the Global South's participation in global governance frameworks.

In early 2024, a survey conducted by the Global Times Research Institute revealed that around 90 percent of respondents from Russia and 11 other developing nations recognize the rising international influence of the Global South, acknowledging China's prominent role within this group.

Furthermore, over 80 percent of those surveyed view the BRICS as a representative entity for the Global South.

Current global economic challenges can be assessed through the lens of three interconnected aspects referred to as the "3D Challenge": demographic shifts, mounting debt, and economic decoupling.

The ongoing decline in labor supply, compounded by an increasing old-age dependency ratio, highlights the acceleration of global aging.

The sustainability of debt-driven economic growth is in question, with global government debt levels having doubled over the past decade without signs of stabilizing.

Additionally, trade and investment flows have experienced a consistent decline after reaching their peak, indicating a diminishing return from globalization.

In contrast to the economic struggles observed in developed nations, emerging markets are reporting a more favorable demographic situation, with limited increases in government debt ratios and a rise in foreign direct investment.

Social and political challenges around the globe are also contributing to economic instabilities.

Expansionary monetary policies in developed countries have, at times, widened the wealth gap, fostering populist sentiments and exacerbating geopolitical tensions, which in turn are creating barriers to economic growth and global development.

The divergence in wealth inequality trends has been stark; emerging markets show signs of wealth distribution improvement while inequality appears to be increasing in developed countries.

Consequently, populism has gained traction predominantly in the US and Europe, bringing with it associated security and geopolitical concerns, with military spending reaching unprecedented levels.

Currently, the global economy finds itself at a triple inflection point influenced by a shifting political landscape in the US, economic transformations in China, and advancements in global technology.

While uncertainties related to significant changes and dynamic economic relationships persist, there are profound vulnerabilities within the global economy.

The isolationist and unilateral tendencies in US policies have underscored the "Kindleberger Trap," marked by increasing economic policy unpredictability, which threatens to heighten financial fragility.

Despite technological innovations, productivity growth has not kept pace, contributing to a continued decline in overall productivity contributions.

A historical analysis indicates a pattern where significant economic downturns occurred during comparable GDP levels across economies, as seen in past collapses involving the Soviet Union and Japan.

China's current nominal GDP trajectory raises similar concerns amidst the realities of structural adjustments and the impacts of inflation on US GDP metrics.

China's advancements in science and technology are accelerating, evidenced by the significant growth in AI research publication outputs compared to the US. From 2018 to 2023, China published nearly 1.8 times as many AI-related research papers as its US counterpart, and it has climbed to 11th place in the Global Innovation Index rankings as of 2024. Its "Three New" economy has contributed to over 18 percent of total economic growth, indicating a shift from demographic advantages to technological innovation-driven growth.

Historically, the Global South leveraged its demographic advantages to facilitate industrialization through industrial transfers from developed nations.

However, the advent of generative AI has poised to disrupt labor markets, necessitating a systemic focus on automation, thereby challenging emerging economies to maintain their industrial progress.

China's commitment to globalization is evolving as it emerges as a central force for the Global South.

Investments in emerging markets under the Belt and Road Initiative are increasing, particularly targeting infrastructure development to enhance these economies' manufacturing competitiveness.

Additionally, China's investments in AI infrastructure across the Global South are positioned to stimulate technological advancements in these developing regions.