Carnegie Endowment for International Peace
The prospect of growing U.S. isolation did not discourage President Trump from pushing his unilateral trade agenda at the G7 summit. This divisive approach is severing the unity that for decades tied together the multilateral economic system.
Trump’s recent trade tariffs severely undermine the transatlantic relationships with U.S. allies in Europe, creating new space for Beijing and Moscow to exert influence.
As President Trump continues to disregard European concerns, Germany feels the need to cultivate better relations with China, with an understanding of the pitfalls and limitations of working with Beijing.
Although the United States and the EU do not always speak with one voice, they should coordinate and present a united front as Chinese capital continues to flow towards the European continent.
Simply having China buy more American goods would make little difference to overall U.S. trade imbalances, but addressing U.S. capital imbalances with the world could be a more effective approach.
U.S. defense sales to India remain important to the broader U.S.–India strategic relationship and deserve sustained focus by officials in both capitals to overcome obstacles to collaboration.
For Americans who have not shared the benefits of globalization, President Trump’s victory represented a path to renewed prosperity. In Louisiana, China is the leading trade partner, and trade accounts for 1 in 5 jobs.
The looming economic war between the United States and China has more to do with the U.S. technological edge than its trade deficits. The atmospherics of unfairness can be changed, if China takes active actions such as eliminating the requirement to form joint ventures.
As Beijing begins to recognize the potential dangers to China from U.S. President Trump’s policies on trade and security, President Xi has turned on the charm offensive towards its Asian neighbors.
Since its announcement in 2013, the Belt and Road Initiative has grown from an idea centered on connectivity and infrastructure development into a global strategy bolstering China’s influence and economic diplomacy.
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