Washington’s is not paying much attention to the developments in Europe – a step that is a costly blunder. Germany has refused to expand its supply of money to support European growth, and this is not helping the market either, as the US has put up goods worth $63.4 billion for sales in January and February 2019. The US sales one-fourth of all its goods abroad and China imports goods worth just $15.6 billion from the USA. Even that has seen a further downfall of late.
The US is trying in vain to revive the Chinese economy. It’s high time they realize that China will do so on its own, being a world power. The Chinese economic reforms should be structured by WTO an IMF to make sure the efforts to reform does not go up in flames.
Hence, the US should take the policy of balancing its accounts with China. Though it is quite early to predict this, the decline in China’s trade surplus of 9.2 % with respect to the United States is a healthy beginning this year.
China should amend its differences with the US quickly, more the ones related to Taiwan, Tibet, problems regarding the South China Sea, Korean Peninsula and the trade triangle involving China, Japan, and Korea.
The US, on the other hand, is not going to gain anything with this trade war with China. It will only distract it away from the trans-Atlantic alliance, keeping a grip on which is so important for its own benefits.
The US Congress is trying to make amends by inviting Frank-Walter Steinmeier, the German President, who is also an avid supporter of transatlantic unity. This a bold step will go a long way in making amends of the unnecessary tussle between the United States and Germany – another mistake that the US is committing itself to.