January 18, 2024. Shanghai – The EU-China Comprehensive Agreement on Investment is conducive to bolstering global trade, Former Italian Prime Minister and Former President of the European Commission Romano Prodi said during a talk on Geopolitics and Multipolar Diplomacy: A European Perspective at CEIBS Shanghai Campus today.

The event, part of the CEIBS Outlook Series, highlighted the challenges and opportunities shaping today’s global landscape, and the role diplomacy plays in navigating this complex terrain. More than 300 people, including representatives of nearly 20 European Consuls General in Shanghai, Chamber of Commerce members, businesspeople, and CEIBS students and alumni attended the event.

In 2010, President Prodi served as the Chair Professor of the European Union at CEIBS, and in 2015 became a member of the CEIBS Board of Directors, where he has continued to steadfastly support the development of the school.

In his welcome speech, CEIBS President (European) Dominique Turpin expressed gratitude for President Prodi's contribution in fostering EU-China collaboration and his unwavering support for CEIBS. He further emphasised that in the wake of global shifts accelerated by the pandemic and regional conflicts, the world finds itself at a crossroads, making today's topic extremely timely in a rapidly evolving global landscape.

“On the geopolitical front, we find ourselves in a time of unprecedented change marked by a confluence of challenges and opportunities. The dynamics of multipolar diplomacy further complicate this landscape, calling for a need to take nuanced and strategic approaches to international relations,” he said.

In his keynote speech, President Prodi pointed out that after decades of a unipolar world, we now find ourselves back in a bipolar world dominated by two competing systems. “In today’s world, there’s not only the power of the US, but also other emerging economies as a result of globalisation. However, if we overemphasise ideological or value frameworks, we’re less likely to reach agreements,” he said.

“International politics is like a bridge. People pass through - cars, trucks, pedestrians. You don’t have to drive the same; have the same ideology or even the same values. You just have to respect the traffic rules,” he continued.

President Prodi, an economist who twice served as Italian Prime Minister, is considered one of the fathers of the euro and is a staunch supporter of EU enlargement who increased the number of member states to 25 during his tenure.

Having first come to China in 1983, President Prodi noted that there are vast differences between Chinese and US foreign policies. “China accounts for 19% of the world’s population, with only 7% of the world’s arable land, which requires a large amount of renewable energy and raw materials. It means that China's foreign policy must be continuous and long term to deal with its people, whereas American foreign policy is, in general, dependent on the President or whoever is in power.”            

In spite of this, he pointed out that the world should be prepared for a new era of diplomatic relations, including changes in the BRICS grouping, the rise of India, and the rise of Middle East powers.

He further suggested that with great changes in economic diplomacy and the increasing role of the government in national economies, competition has now risen from being solely among companies to being among states which, he noted, is entirely different from just 25 years ago.

In such a context the European Union, as the second largest economy in the world, is destined to play a greater role in multilateral coordination.

“A fragmented Europe needs policies and regulations to attract investment; one window of opportunity lies in the EU-China Comprehensive Agreement on Investment,” he explained.

Following his keynote remarks, President Prodi then engaged in an interactive conversation with CEIBS Vice President and Dean Frank Bournois, during which they explored EU-China relations, challenges faced by the EU, and the role of institutions like CEIBS in today’s evolving business world.

"For CEIBS, if it wants to change the business environment, it is essential to have more students from all backgrounds", said President Prodi, adding that it’s also crucial for them to focus on exchange and connections in order for CEIBS to fulfil its mission as an international business school.

Following the Q&A, CEIBS President Wang Hong presented a gift to President Prodi on behalf of the school.

The event then concluded with a strategic cooperation agreement signing ceremony between CEIBS and Bologna Business School in Italy, where President Prodi previously served as President of the Supervisory Board. According to the agreement, the two schools will enhance research and faculty exchanges and bolster more cooperation opportunities in their Executive Education programmes in the future.

The signing ceremony was led by CEIBS President Wang Hong and CEIBS President (European) Dominique Turpin on behalf of the school.