German exports slow down: Should Europe celebrate?
Those European leaders who like to complain about the ongoing trade surpluses of the German economy should not celebrate the recent slowdown in Germany’s exports and GDP growth. Higher labor costs and tensions in international trade may cause trouble for German exporters, but they are already investing in new production facilities in low-cost countries. If German exports slow down, their market share might be taken by German producers outside of Germany, while the productivity gap between Germany and the rest of Europe will widen.
A powerful new president in Mexico
Swept into office by an overwhelming electoral victory last month, Mexican President-elect Andres Manuel Lopez Obrador will take office with a degree of power not seen in decades. He has prioritized several issue areas, including poverty, corruption and negotiations over NAFTA, but his specific policy agenda remains unclear. The new Mexican leader's success will depend on balancing decisive action with healthy restraints on presidential power
U.S. security policy toward Europe: The next phase
One of the most frequently asked questions about President Donald Trump’s foreign policy is what it plans to do about Europe. The answer to that is now clearer, though not necessarily the disaster for transatlantic relations that the G7 summit in Quebec appeared to be. What Washington has in mind is unsettling enough – regional stability and security, yes, but through bilateral engagement, and with much more combative economic policies.
China refreshens old promises to open up its domestic market
Chinese President Xi Jinping’s April pledge to allow more foreign competition in the country’s manufacturing and financial services sectors, and to respect Western companies’ intellectual property rights, momentarily eased the tension between Washington and Beijing. However, even if China implements these concessions, they will not suffice to eliminate the huge, deepening deficit in U.S. trade with the Asian country.
Cuba in transition
Cuba will get a new leader in April, after President Raul Castro hands over the presidency to First Vice President Miguel Diaz-Canel. As the country tentatively introduces decentralizing reforms and embraces globalization, the new leadership will have to answer the question of how much freedom it can allow while retaining a tight political and economic grip over the country.
GIS Dossier: China’s Africa strategy
Beijing’s 1996 Going Out strategy called for trade and investment in developing countries to secure energy and raw materials for its accelerating economy. Two decades later, China’s relationship with Africa is evolving into a mature, balanced system of economic and political interests.
Jokowi’s prospects and Indonesia’s future
Indonesian President Joko Widodo – better known as Jokowi – has run up against tough political resistance. He is learning the hard way that the country’s cumbersome bureaucracy does not react as quickly as the businesses he has run. But despite some mistakes, he still retains public support due to his focus on economic development and infrastructure. If he can see his ambitious initiatives through and make Indonesia a “Global Maritime Fulcrum,” the country would play a pivotal geopolitical role.