The combined effects of globalization and technological change caused “deindustrialization” across a wide swath of the United States. Deindustrialization is responsible for making good paying manufacturing jobs requiring low to medium skills scarce, eviscerating the middle class in certain regions, and stoking political resentment—a major issue for workers both in the U.S. and China.

With the election of Donald Trump to the White House, the Obama Administration has finally accepted the inevitable and has announced that it will cease efforts to push the Trans Pacific Partnership (TPP) forward in the waning days of the Lame Duck session. Over the long term, Washington will need to re-assert its trade presence in the Asia-Pacific region. The supply chains are too interwoven and interdependent for the U.S. to go at it alone, despite the isolationist rhetoric emanating from the U.S. election.

This December marks the 15th anniversary of China’s accession to the World Trade Organization. In the past 15 years, China could have played a bigger role in promoting global governance had the world’s institutional structures allowed it optimum participation in the global rule-making process. That will be China’s main objective in the future.

China’s economy was stable as reported by the NBS, shaking off the negative growth of 54 months and showing that China’s industrial output has escaped from the difficulty of deflation. If the short-term steady growth policy and the long-term structural reform policy can be carried out, economic growth is expected to be over 6.5% next year — despite any potential actions by the US Federal Reserve and domestic pressures.

The importance of China’s Belt and Road Initiative (BRI) is clear in regards to its place in economic and foreign policy. How it fits into U.S.-China relations is less obvious. While BRI could contribute to competition between the U.S. and China, it could also be used to enhance cooperation—an initiative that must be engaged and shaped with conscious efforts.

The current international monetary order is failing to provide the necessary tools to cope with episodes of capital flow volatility. In the short term, the BRICS countries should step in and take steps to address this issue. In the long run, they should seek to reform the monetary system and promote international financial stability.

China is increasingly portrayed as the next disaster in a crisis-prone world. Stephen S. Roach disagrees, recognizing his minority opinion. Roach argues that without China, the world economy would already be in recession, citing the IMF’s October World Economic Outlook.

China needs to continue improving the RMB’s attraction as a financial transaction currency by marketizing the exchange rate and opening up the capital market. In the long-term, it means that the RMB internationalization will be more driven by being used in pricing and as reserve currency rather than by cross-border trade settlement.

Chinese contractors have recently built a railroad in Ethiopia that will connect it to the ocean. The railroad promises to streamline Ethiopia’s exportation process. It is hoped that this new development will boost economic growth in Ethiopia, which has recently stagnated due to a historically bad drought and increasing civil strife.

The China-Israel Financial Protocol ('Financial Protocol'), signed 20 years ago has already reached a cumulative value of 2.6 Billion USD to date. The Financial Protocol facilitates the introduction of advanced high-tech Israeli goods and services to China by providing government insurance to reduce risks and financial costs. In this respect, the Financial Protocol sets a good example for the implementation of the Road and Belt Initiative, although it is not specifically included in the scope of diplomacy.