China reaches out as the USA withdraws - AmpGFX

Greg Gibbs, Director at Amplifying Global FX Capital, suggests that emerging economies that represent now at least an equal share of the global economy and do not have the same anti-establishment driven politics, will be more prepared to work with each other.

Key Quotes

“The USA in particular risks accelerating its decline of power and influence in other parts of the world that have the greatest growth potential. By immediately pulling out of the TPP, the USA has set in motion more intense efforts by other nations in the Asia-Pacific to pursue trade deals that exclude the USA.”

“This is a key moment for China to accelerate its influence in Asia and other regions with less competitive pressure from the USA.  The USA already decided to stay out of the AIIB that has over 50 member countries including most other developed countries, a multi-lateral organization that was started by China and may prove to be a potent vehicle for it to drive development and cooperation just at the time when the USA turns inward.”

“As such, the anti-globalization policies Trump intends to pursue may turn out to be a major detriment for USA companies that will have long-lived implications.”

“Trump appears to have the attitude that the USA is so big and powerful that the rest of the world will still be knocking on its door.”

“However that time may have passed, just as it has passed on views that China and Japan are currency manipulators and by easing restrictions on energy production millions of US jobs will be created.”