China and Iran recently announced that they are moving forward with a 25-year roadmap to expand political and economic relations. While the main points of this comprehensive agreement have not yet been revealed, it is transparent that it is a strong axis to the east for Iran. This additional agreement weakens America’s position in the Middle East. The United States had withdrawn beyond the multilateral cloud disarmament agreement with Iran. The United States is also leaving the World Health Organization, taking a step further on the world stage. For the first time before World War II, America’s leadership role in the world is declining. From 1870 to the last decade, U.S. exports increased from 2.5% to 14% of GDP. The rise of the global industry has led to economic expansion in the United States, but also around the world. It has also strengthened America’s economic and political influence on the foreign stage. Four recent trends over the past 3 years are opposed to this trend, to the detriment of the United States and to gain China’s advantages.
U.S. Foreign Cuts
The recent U.S. foreign policy has triggered industrial/tariff wars with shaping allies and with China. The United States has also withdrawn from the Paris Climate Agreement, the Trans-Pacific Partnership and the Nuclear Disarmament Agreement with Iran. He moved away from NATO and rejected NAFTA. As the industry’s dispute with China and other countries intensified, import price lists limited industry; U.S. corporations have begun looking for elected suppliers and customers. Meanwhile, the rest of the world has continued with multilateral agreements that have overlooked the United States. In 2018, Japan and the European Union signed an industrial agreement to shape the world’s largest trading bloc. The Trans-Pacific Partnership continued without the United States, strengthening the ability of Asian countries to compete with China and create economic opportunities for their spouse countries in the Americas.
China advances the schedule
With the united States’ withdrawal from the world stage, China has pursued a more dominant position. China has negotiated a comprehensive 25-year framework for economic and political cooperation in Iran. This strengthens China’s position in the Middle East. Chinese corporations are the largest investors in Africa and have invested more than $140 billion in Latin America. China has also invested throughout Asia and Europe to revive the old Silk Road under the new One Belt, One Road. China has strategically invested in key infrastructure, such as power plants, roads, bridges, herbal resources, and ports.
As China moves forward, other countries are following suit. For example, Mexico has been active in global construction relations since the signing of the first NAFTA agreement in 1992. He has signed industrial agreements with more than 50 countries. For this reason, Mexico is the 15th largest recipient of foreign direct investment (FDI) in the world and has a strong production sector. And now Mexican corporations are moving forward to make FDI for themselves. “Mexican personal corporations have already ventured into the globalization trend, such as CEMEX, GRUMA, Coca-Cola FEMSA, ARCA, Bimbo, etc. and will continue with their global investment strategy.” said Fernando López, president of Veritiv Mexico, the Mexican subsidiary of a Fortune 500 company.
The United States has been on the sidelines and will be excluded from economic benefits.
The trend favors non-Americans. Local producers
“The previously”Australian “paddock to the plate” movement, originally founded on the niche of physical fitness and considerations of local craftsmanship (and not unusual in other countries as well), would possibly be about to fit much more, not unusual, as COVID puts out 19 weaknesses in the foreign source chain, and China and the United States increasingly show behavior contrary to the interests of loose-industry countries such as Australia. Highlighted was Nick Palmer, former Australian CEO and spouse of a consulting firm with Asian and American experience. The “paddock to plate” movement is known as the farm-to-table trend in the United States. And whatever the call in other regions, this preference for some locally grown products is booming around the world. They are not just products; It’s also like Bollywood’s preference over Hollywood videos in India and China Alibaba instead of eBay in China. This undermines the ability of U.S. corporations to sell their products and products in other countries.
U.S. socially disposed of the world by Covid-19
Covid-19 is also a primary disruptor. The United States, like many other countries, has imposed restrictions on foreign travel. This seriously harms U.S. corporations by receiving gadgets from foreign suppliers and meeting with foreign customers. Unlike other countries, the United States does not paint with multinational organizations to combat the global pandemic. Instead, he withdrew from WHO and did not attend the global summit on vaccines. The European Union met in the economic recovery with a recovery plan of 1 trillion euros of investments. China has proposed the percentage of all vaccines developed in China and provided $2 billion in monetary assistance to the most affected countries through Covid-19.
While countries are seeking global partners, they may be forced to build alliances outside the United States. For example, for many decades, Australia has been a tough ally. In 2003, President George Bush called them “deputy sheriff” of U.S. interests in the region. Australia has had to balance an Anglo-Western alliance with China’s dependence. They are a major exporter of iron ore and other resources to China. Tourism and schooling are also primary industries in Australia. Many of these 3 industries come from China. Australia is involved in the needs of its income source resources that are not sufficiently diversified.
Therefore, Australians sometimes prefer a more powerful relationship between the United States and Australia. However, in May, the United States jeopardized this alliance by threatening the Joint Strike Fighter project. As a component of this project, portions of F-35 fighter jets are manufactured in Australia and shipped to the United States for final completion. In return, Australia agreed to buy the fighter jets. The recent announcement that the United States would manufacture all portions jeopardizes Australia’s $17 billion agreement to acquire the fighter jets. Australian leaders don’t know how to perceive the new signs. This can push Australia into relationships with its other major trading component, China.
I have been CFO and interim CEO of several companies. I’ve ended more than $2.5 billion in mergers and acquisitions and $4.5 billion in financial transactions. For more than 10 years, I have
I have been CFO and interim CEO of several global companies. I’ve ended more than $2.5 billion in mergers and acquisitions and $4.5 billion in financial transactions. For more than 10 years, I have also been an adjunct professor at the UC Davis Graduate Administration School, training foreign finance and foreign trade. I’ve served together, adding a bank with over $1 billion in assets, a school, a homeless shelter and a publicly traded trading company. I am co-author of an e-book The 80/20 CFO: a consultant to make strategic transformations for your company. I have an exclusive attitude at the intersection of the C-suite, the educational network and the board of directors. I am a common speaker on leadership, foreign expansion and strategic change. I’m also a mother of two wonderful teenagers, and it reminds me that I don’t have all the answers.