While Trump squanders US international leadership, China is gradually gaining clout. In Italy, a poll considered is as the best foreign friend. The US by de-funding the WHO or blocking at the G20 more help for emerging countries only spreads hostility 1/5 economist.com/leaders/2020/0…
More cooperation with China is becoming unavoidable and, yet, caution is also warranted. The EU’s competition chief urged European “governments to buy stakes in strategic firms to stop China from taking advantage of market turmoil to snap them up cheaply”2/5
The inevitable and increasing international importance of China has to be accommodated in the context of the multilateral institutions that Trump wants to undermine, like the WTO, the WHO or the IMF (The US is opposing the increase of IMF resources). 3/
The hegemony of the US is not going to disappear for many years to come due to its military and financial superiority and the dollar dominance.There are, though, limits to having one country supplying the currency for the world growing needs.(Obstfeld nber.org/papers/w17379.…)4/5
The world is looking for alternatives to complement the dollar role. The narrow vision of European “frugal four countries” is preventing the creation of a sizable European safe asset that could foster the international role of the euro, improving Europe’s strategic power. 5/5
