The Coming China-Germany Trade Juggernaut

 

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In a post-American trade war, this emerging bloc will wield devastating power.

Stories of international angst over United States President Donald Trump’s protectionist approach are becoming more commonplace. Mr. Trump’s “buy American, hire American” catchphrase sounds good for many at home, but abroad, it is prompting a weighty reorganization of international trade relationships. And long term, the result will be a trade war that will prove ruinous to the U.S.

World trade has changed a great deal over the last several decades. The international community at large no longer depends on America’s giant import expenditures and exports. Parag Khanna of Politico wrote:

As Americans, it’s easy to assume that global trade still depends on America as the consumer of last resort. But that’s no longer true. In fact, the majority of trade in emerging-market nations is with each other, not with the U.S. In 1990, emerging economies sent 65 percent of their exports to developed nations like the U.S. and Europe, and only 35 percent to other developing countries. Today, that figure is nearly reversed.

China’s Conquest of New Zealand

(iStock.com/Teerawat Pongsiripreeda)

 

The giant panda is eating kiwi for lunch—and nobody seems to be bothered.

We New Zealanders are few in number but have slogged it out over the past century and a half to become the largest dairy exporter on Earth—sending out 95 percent of our product. Our dairy industry is critical to our economy. The livelihood of our country depends, to a great deal, on how well our farms do. Judging by what has been happening of late, that’s not so well at all.

New Zealand—China’s Milkman