An evil nightmare and the worst year of all time – it has been dumb for 2020 for some time. The Covid-19 pandemic, which has partially paralyzed the world, massive protests for equality in the United States and in many parts of Europe, unprecedented fires and other events rocking public order, really mark this year different. The international environment has been changing radically for some time. Everyone can choose the starting point – the application of the war on terrorism, Russia’s invasions of neighboring countries, the election of Brexit and Donald Trump could be some options. Each of them has challenged the traditional Western dominance of the world in a different way. China now has an offer for Europe – the “forget America” written between the lines.
In the global market for decades, the largest trading partners are United States of America a The European Union. Europeans export about twice as much to the United States as to China, and Americans also export twice as much goods and services to Europe as to the East, according to statistics from both sides. In the meantime, China has equally strong ties with the two, with similar exports and significantly higher imports. Simply put, there are two closely linked economic giants in this global scheme, while the third is growing rapidly.
In order to maintain growth, it is essential for China to maintain its current ties with Europe and the United States, as its trade balance with both is highly favorable. It was also beneficial for Europeans and Americans at least until recently – China traditionally produced what is resource-intensive, labor-intensive, and low-value-added, while the West maintained a dominant position in the production of high-value-added products. There are also companies in Latvia that create an idea, order product details in China, but put their “brains” to us or conjure an image and find a market.
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