In the language of businessman Trump
By Jack Gerats
Now that the term ‘Pax Americana’ does not seem to be in the dictionary of current US President Donald Trump and China’s global influence is increasing, a new European strategy is urgently needed, argues economist Jack Gerats. For example, by initiating international economic agreements with China to bring imports and exports with China more into balance. That is a language that businessman Trump will address.
Trading Required
So it’s Europe’s turn. It is imperative to continue to pursue the international legal order, otherwise the chaos will be incalculable. The decline of that order is a reality – yet the Netherlands certainly has a good mission to fulfil in this regard with the International Court of Justice in The Hague.
Secondly, Europe can focus even more on innovation in the economic field. Under pressure from the rapid innovation in China in particular, this urgency is increasingly felt. Good news for Europe is that several economies in Southern and Eastern Europe are doing well.
Thirdly, a new strategy towards China is of great importance. China is hitting the international economy by exporting a huge amount and importing little. China’s exports threaten to damage both the economy of the USA and that of Western Europe.
China: benefits from more imports
China’s economy is moving from mass production to innovation for high-quality manufacturing. China has already provided more international prosperity in recent decades, also in Europe. The international interconnectedness that has grown cannot be underestimated. This makes more consideration of China economically necessary.
China itself can benefit from more imports to strengthen the economy and increase the prosperity and well-being of the population. China has already started measures to increase consumption and livelihoods, such as better pensions. This can reduce the hoarding of money by the Chinese and increase the consumption of the population. Even though the expansion of social security and solving the real estate crisis in China will take time.
Europe: far-reaching agreements with China
In Trump’s strategy, the European Union must save itself. If the European Union wants to stay afloat, it will be forced to make far-reaching agreements with China independently. These agreements are necessary to protect the European economy. In addition, China will be happy to work with the European Union to be less dependent on the USA.
It is up to the European Union to reach international agreements with China in the economic field. The courage to do so can be mustered by using its current economic strength and by facing the great risk of losing it.
Showing off this economic power – and deals with China – will certainly impress the businessman that Trump is.
For the USA, it has great advantages if Western Europe contributes to restoring the international balance between exports and imports with China. The European Union can therefore no longer be dismissed as a decadent loser.
First steps
Recently, the European Commission issued guidelines allowing Chinese manufacturers to export electric cars to the European Union at minimum prices. These prices must be so high that they compensate for the Chinese government support. This will allow them to avoid anti-subsidy levies from 2024.
According to a response from the Chinese trade ministry, these guidelines are an important breakthrough: “It shows that both parties have the ability and willingness to resolve differences in a correct manner through consultation”. (Het Financieele Dagblad, 13 January 2026)
By taking the first steps towards a trade agreement with China, Europe’s perspective can be turned around for the better instead of missing opportunities and sinking into malaise.
Jack Gerats graduated from Tilburg University in the economics of developing countries. After retiring as alderman of Maastricht in 2018, he learned Chinese and immersed himself in China.
