With each passing day, the US President seems determined to add to his growing list of political faux pas. Some commentators view this as deliberate, a strategy based on chaos rather than incompetence. Either way, China would be pleased.
Since November last year, the US has been disengaging from the world, withdrawing from the Paris climate accord and the Transpacific Trade Partnership (TPP). That left a global leadership hole into which China, the world’s second largest economy, has quickly stepped.
In 1820, China was the world’s largest economy, accounting for more than a third of global GDP. It is now returning to what many Chinese view as their rightful place at the top of the economic tree. The US retreat from global leadership is hastening this inevitability. It is China that is being made great again, not America. And this has big implications for Australian investors.