Berlin (GPA) – US President Donald Trump’s increasingly protectionist trade policy is paving the way for a “new phase” in global relations according to Chinese President Xi Jinping.
This morning a meeting to place between President Xi and German Chancellor Angela Merkel at the opening of a garden in the Berlin Zoo. Despite the unique setting, the meeting between the leaders of Germany (the largest economy in the European Union), and China (the second largest world economy), and attendees of the upcoming G-20 summit in Hamburg, could usher in a major power shift in the global economy.
In Xi’s own words, the new diplomatic efforts are a sign that “Chinese-German relations are now about to have a new start where we need new breakthroughs.”
The new relationship is a part of increasing global ties between nations that seem to be moving to fill the global leadership vacuum being left by powers such as the US and U.K., who continue to lose their dominance on global markets.
Part of this new economic alignment is due to Trump regime decisions that leave the US increasingly isolated, like Washington’s decision to opt out of the climate agreements made in Paris. However, the major factor in this power shift was Trump fulfilling his promise of withdrawing the US from the global trade agreement known as the Trans-Pacific Partnership (TPP).
The death of the TPP was the result of major public pressure against multilateral trade talks and globalization. While the TPP was admittedly an awful multinational corporate slavery contract the average american had no voice in, the scrapping of the contract has led a majority of Pacific rim countries in limbo concerning whether their trade policy should shift focus from the US to China.
These decisions by the US have played a major role in creating the environment that encouraged Xi to unveil his ambitious “One Belt, One Road” economic plan. When the increasingly positive global opinion around Chinese investment is factored in to the OBOR plan, it becomes obvious that the US is losing it’s grip on global capital.