The U.S. withdrawal from TPP and TTIP leaves the EU as the main advocate of high regulatory standards in international trade agreements. The Trump administration’s anti-trade rhetoric may have created an opening for Brussels to get concessions from Beijing and to bolster its position through agreements with other Asian countries.
Europe’s increasing police and judicial cooperation with China raises difficult questions, especially with regard to extradition. Governments should make sure the cooperation does not undermine international and European legal norms.
In the absence of U.S. and European leadership, China is emerging as the world’s best hope in the fight for climate change. Despite tremendous near-term challenges, Beijing’s political commitment and forward-looking policies could turn China into a model for building an alternative energy economy.
As China imposes tighter controls on capital outflows, China’s global M&A activities may decelerate. However, German companies are likely to remain attractive targets for Chinese buyers for strategic, geopolitical, and business reasons.
The Xi Jinping administration plans to institutionalize its anti-corruption campaign in a new powerful state organ, creating a permanent tool for investigation and prosecution. The reform suggests the introduction of extra-party supervision while it actually expands the CCP’s reach.