The German Times April 2019
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April 2019 ISSN 1864-3965 NEWSPECTACLES SHARPEN YOUR VISION OF THE PAST, PRESENT AND FUTURE OF GERMANY BE READY TO HAVE YOUR NOTIONS OF THE COUNTRY BROUGHT INTO BETTER FOCUS SHUTTERSTOCK IN THIS ISSUE While Germany is looking at its rela- Trading up Trading places tionship to NATO (page 5), the US is making significant improvements to its The European Union is trying to forge The US is pursuing a protectionist agenda Ramstein Air Base – with the help of their German hosts (page 4). a more robust partnership with China that breaks with its own ideals Two of the nation’s most reputable institutions, Deutsche Bank (page 14) “China can no longer be regarded as Even those who insist that Trump’s and the national soccer team (page BY THEO SOMMER a developing country. It is a key global BY ALEXANDER HAGELÜKEN punitive measures will begin to show a 22), have not made good impressions actor and leading technological power. marked impact starting this year will have of late. The Basic Law, on the other ince 2003, China and the Euro- Its increasing presence in the world, ou have to give Donald Trump to acknowledge the problem: Politicians hand, is very much alive and going pean Union have been com- including in Europe, should be accom- credit for at least one thing: cannot simply switch on the demand strong at age 70 (page 8) while Dirk Smitted to what is called, rather panied by greater responsibilities for YHe never hid his feelings about for domestic products, as Trump sug- Nowitzki’s 21-year NBA career has grandiloquently, a Comprehensive upholding the rules-based international China. One year before he was elected gested he could while addressing the brought him great appreciation as a Strategic Partnership. In this frame- order, as well as greater reciprocity, 45th president of the United States, he frustrated industrial workers in the Rust global basketball legend (page 23). work, their trade relationship has non-discrimination and openness of its wrote in his manifesto Great Again: How Belt. In fact, consumers often end up flourished above all others. For 17 system. China’s publicly stated reform to Fix Our Crippled America: “There are buying foreign goods anyway, in spite of Enjoy the scenery and gain insight into years now, the EU has been China’s ambitions should translate into policies people who wish I wouldn’t refer to the customs duties, simply because those the deep philosophical significance biggest trading partner, while China or actions commensurate with its role China as our enemy. But that’s exactly goods are of better quality, or because Germans place in the forest (page 17), has become the EU’s second-biggest and responsibility.” what they are.” US products are much too expensive, and while you’re there, you just might partner after the United States. In Pulling no punches, the next para- An erstwhile trading partner becomes or because they’re not available at all. see a wolf and learn about how hu- 2018, their trade volume reached an graph stated that the 2016 Strategy on a stated enemy – it’s hard to imagine a In recent decades, the US economy has mans and animals can see eye-to-eye impressive $682 billion. China remained the cornerstone of EU greater break from the tradition of US relied on services, in particular on the on certain issues (page 18). In recent years, however, the Euro- engagement, yet it provided the basis economic policy. And in the more than financial industry and digital services, peans have found their economic rela- “for further EU policy shift towards a two years since his presidency began, while US heavy industry slumped – or tionship with the People’s Republic more realistic, assertive and multi-fac- Trump has pursued this rupture as con- had bulk goods produced abroad. less and less satisfactory. They started eted approach. This will ensure that sistently as he could. He pulled out of In addition, the nations that are targets complaining ever relations […] are set groundbreaking of Trump’s punitive louder about unfair on a fair, balanced trade agreements, tariffs usually tend trade relations and and mutually ben- including the TPP to strike back and a lack of reciprocity Chinese eficial course.” (A with Asian-Pacific Trump is increase the price in investment rela- footnote, which states and the TTIP of US goods in tions while tough- companies must have stuck with Europe. He alienating their own countries ening their stance in Beijing’s gullet, continues trying – goods that con- on Chinese busi- are facing far while confirming to incapacitate the countries that sumers then usually ness practices, such the EU’s continued World Trade Orga- leave to gather dust A paper within the paper as restricted market more stringent adherence to its nization (WTO). have been close on the shelf. In turn, access, forced tech- “one China Policy,” And he has imposed this has a negative nology transfer, scrutiny than underlines its per- a wave of punitive partners for impact on the US unlimited indus- sistent commit- tariffs – the likes trade balance. trial subsidies and before ment to developing of which have not decades In macroeco- limited respect for its relations with been seen since nomic terms, the intellectual prop- Taiwan.) World War II – that tariffs are also PAID erty rights. Moreover, Chinese compa- Looking at different policy areas, the are directed at countries on virtually all highly doubtful in the first place. We see PRSRT STD PRSRT U.S. POSTAGE U.S. nies buying or buying into European authors presented multi-faceted pictures continents. this in the steel and aluminum sectors, SUBURBAN MD PERMIT NO. 4848 PERMIT NO. enterprises are facing far more stringent of China. They called it: This protectionist approach is com- where Trump took measures against his scrutiny than before. M a cooperation partner with whom the pletely new for the traditionally economi- economic partners across the board. As “Europe must defend its strategic inter- EU has closely aligned objectives, cally liberal United States. The policy still a recent study by the Boston Consulting ests,” explained EU Commission Presi- M a negotiating partner with whom the seems to be polling well among Trump’s Group showed, this approach did indeed dent Jean-Claude Juncker, announcing EU needs to find a balance of interests, followers. But the actual economic and benefit US steel manufacturers in the the introduction of a new mechanism M an economic competitor in the political balance sheet associated with short term by helping them sell more for investment screening whenever a for- pursuit of technological leadership, this new approach is showing negative and increasing their profit margin by 5 eign acquisitor raises security concerns. M and a systemic rival promoting figures. The president is alienating coun- percentage points to 14 percent. And yet, Characteristically blunt, French Presi- alternative models of governance. tries that have been close partners for investors have little faith in such a trend dent Emmanuel Macron chimed in: “The “This requires a flexible pragmatic decades, thus doing tangible harm to his because they simply don’t believe in any period of European naÏveté is over.” The whole-of-EU approach enabling a prin- own country and the global economy long-term effects. As a result, despite new mood was faithfully reflected in a cipled defense of interests and values,” as a whole, while also failing to meet his their higher profits, the manufacturers’ Joint Communication by the European they reason. “The tools and modalities of publicly proclaimed goals. Even the forth- share prices nosedived. Union and the High Representative for EU engagement with China should also coming deal with China – if it actually Plus, much more importantly, Trump Foreign Affairs and Security Policy, pub- be differentiated depending on the issues comes – will not be able to make up for has made production more expensive for lished on March 12, 2019. By the second and policies at stake. The EU should use this catastrophe. all US companies that use steel. “Metal paragraph, the document already struck linkages across different policy areas and The logic behind Trump’s punitive tar- processing and steel-dependent com- a bold new tone: sectors in order to exert more leverage in iffs is that by making foreign products panies, where easily 10 to 20 times the “There is a growing appreciation in pursuit of its objectives.” more expensive, they will prompt US number of people are employed than in Europe that the balance of challenges Reviewing relations with China, the consumers to purchase domestic goods the steel industry, face great challenges,” and opportunities presented by China Commission and the High Representa- instead. However, despite the duties wrote Boston Consulting in their report. 3708 35th St NW St 3708 35th The German Times has shifted. In the last decade, China’s tive recommend that “the EU should levied on many of its partners, the US “Higher steel prices negatively impact Washington, DC, 20016 Washington, economic power and political influence robustly seek more balanced and recip- trade deficit shot up by a whopping 20 their profits and lead to lower-level com- have grown with unprecedented scale rocal conditions governing the eco- percent to reach €620 billion in 2018. petitiveness as well as job losses.” and speed, reflecting its ambitions to This was its highest level in 10 years. become a leading global power. continued on page 2 America the weak. continued on page 4 2 April 2019 IMAGO/ZUMA PRESS IMAGO/ZUMA election is actually about: assert- BY MATTHIAS NASS ing Europe’s position in global power circles alongside China, s Brexit a wash? The ques- Russia and Donald Trump’s Read tion is not as absurd as it America.