Why the US can benefit from fair and reciprocal trade in a growing world economy

by Dramelin 3:30 AM 0 comments

The Chinese were not far behind.
President Xi Jinping came to Florida in early April to meet Trump and convince him that a "win-win cooperation" was much better than intractable frictions in dealing with decades of Washington`s neglect while the Chinese were pocketing trillions of dollars from U.
China`s $580 billion of annual trade with the U.
is an essential feature of Beijing`s economic policy as the country rushes to modernize, eradicate poverty and build a "moderately prosperous society" over the next two years.
That trade is a vector of investment flows and technology transfers that China needs to upgrade the quality of its economic development.
Jobs, incomes and a real wealth creation is what the Europeans and Chinese are fretting about — a sharp contrast to American global strategists who give the economy short shrift, ignore the wellsprings of American power and argue instead about whom to hit next.
Luckily, the Europeans and the Chinese will continue to focus on sustained economic growth.
That should help America to sell them more goods and services to reinvigorate the economy and overcome structural obstacles to a faster potential and noninflationary growth.
Germany is a good example of such an opportunity.
At the moment, the country is experiencing brisk economic activity, full employment and widespread labor shortages.
By insisting on a more balanced trade relationship, the U.
now has a chance to step up export sales to a thriving German economy.
Germans are also working on new business possibilities.
Echoing similar voices in other European countries, members of Germany`s possibly new governing coalition are forcefully advocating friendlier U.
-Russian ties to get rid of sanction wars and reopen access to commerce and investments the Europeans are currently losing to their Asian competitors.
With about $80 billion of U.
trade, France is a much smaller economic partner, but its economy is perking up and offering more lively markets for American products.
Paris will also play an important role in future trans-Atlantic economic relations once Germany gets its government and further European Union integration initiatives become top policy issues.