“According to an economic expert, the United States cannot compete equal to China.”, – WRITE: www.unian.ua
According to an economic expert, the United States cannot compete equal to China.
According to the expert, Trump does not fully understand what makes / photo – Getty ImagesUS President Donald Trump Trade War raises a huge number of questions about its expediency. While Finance Minister Scott Bessant is trying to find logic in every economic decision of the American leader, the leaders of other countries of the world are trying to understand what Washington intended.
Journalist and economic expert Alan Bitty in his column for Financial Times stated that over a decade of the US levers of influence of the US on the processing of the global trading system weakened compared to China. According to him, even Trump now realizes that the US is no longer indispensable.
The role of the US in the world trade began to weakenBitty recalled that during the implementation of the Marshall Plan after the Second World War, the United States created a predominantly Atlantic political economy in Western Europe. The Americans offered not only Marshall’s financial assistance, but also advanced technologies, as well as access to their growing consumer market.
However, all these advantages were dispersed, the expert says. He noted that the US budgets have declined significantly compared to Chinese.
The journalist recalled that Joe Baiden’s Expature President worked hard to deprive China of advanced technologies, but the inability to compare Chinese official and corporate investment, as well as incorrect signals for the US industry, have led to the fact that the states were lagging behind in most “green technologies”.
China captures world tradeThe expert stressed that many countries that want to introduce more ecological energy or replace most traditional ICE cars with electric vehicles, most often buy these technologies in China with large subsidies.
The journalist shared that according to the consulting company Rhodium Group, 2023 China’s share in world export of solar panels and modules was 53.5% compared to 35.5% 10 years ago. At the same time, the proportion of Chinese lithium-ion batteries for electric vehicles exceeded 50%.
The United States also uses import duties and import duties to try to create your own production of batteries, electric vehicles and solar panels for the domestic market, the expert explained. However, he believes that huge duties will not make the US a competitive exporter.
In addition, the European Union tries to integrate advanced Chinese car industry technologies into its domestic market. The expert added that the US Automobile Industry was very injured because of the “trade protection” of Trump, focusing on the production of large gasoline pickups that are not needed by many countries of the world. At this time, the sector of low -cost electric vehicles gradually becomes more popular.
What is Trump’s planThe journalist shared that the US has long been using access to its domestic market as a bait for trading partners. Americans are trying to force them to reduce duties and accept local trade rules.
The expert recalled that in 2016, 12 Asian-Pacific countries were signed by the Transstickooocian partnership, which was designed to surround China-oriented by China. However, the US Congress delayed the signing of the agreement, and in 2017, Trump completely led the country from it.
Later, the countries that signed the Transychooe Partnership went further and turned it into a “comprehensive and progressive” agreement, but without the US, the expert emphasized. He added that since then the prospects for using the US market as a lever of influence have declined not only because of the secular decrease in America’s share in the world economy, but also because of the toxicity of trade agreements in Washington.
The idea of Trump is to take access to the market for other countries and then restore it in exchange for trade concessions, Bitty explained. According to him, such conditions are “a whip without gingerbread.”
Bitty stressed that the US is in a shaky position. The country has no help, technologies and access to markets to control world trade as before.
Trump Trade War – Other NewsEarlier, The New York Times wrote that the European Defense Industry could benefit from US President Donald Trump. Many European countries are going to abandon American weapons.
In addition, The Wall Street Journal wrote that the military economy of Russian dictator Vladimir Putin would not escape the consequences of Trump’s trade war. Reducing oil prices will hit Russian growth, which is slowing down, and will reduce Moscow’s military budget.
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