I agree with Donald. I didn’t expect to be writing that, but after watching President Trump’s speech in Davos the central point seems irresistible. Unless trade is fair it won’t stay free for long. Free and fair go together. When it comes to trade policy reciprocity is everything.
The target of Mr Trump’s rhetoric was of course China. When he got back to Washington, Mr Trump imposed measures to restrict what he regards as the dumping of solar panels and washing machines. The real issue, though, is much wider and concerns the trade system as a whole and China’s future relationships with the rest of the world. Energy is not the only sector affected but it is at the heart of the conflict — and perhaps of the potential solution.
You might think that China has everything going for it. There is capital in abundance; China can buy whatever it wants. The country is now highly skilled and a leader in science and technology, not least in energy. China also has “friends”. Which lobbyist or former minister doesn’t want their bag of Chinese gold? And, perhaps most important of all, China has a coherence in public policy that countries such as the US and the UK can only envy. There are clear strategic objectives backed up with specific plans. The political leadership is capable of taking decisive decisions and getting them delivered. That is why so much has been achieved in the last 30 years.