The US presidency is still the most powerful job in the whole world even if the US is no longer as prosperous as other nations when it comes to GDP, the best measure of the standards of living of individual Americans. Oil-rich Qatar and Kuwait have overtaken the US in terms of high cash flows.
Meanwhile, the US still maintains a higher standard of living than China, its main competitor when it comes to the military and economy. China has a higher overall GDP than the United States but the population of China is four times that of the US. This means that the Chinese still earns less than Americans; however, they do not need too much to survive.
Even as America’s economic power subsides, the nation still has strong influence being the world’s largest democracy. In addressing the economic issues, the new American president vows to make the nation great again. However, it seems that Trump has chosen a risky strategy of alienating its loyal allies by threatening to disrupt the North Atlantic Treaty Organization (NATO) and tear up the longstanding trade relationship with Australia.
Australia is already planning to form trade partnerships that are independent of the US if in case Trump decides to walk out of the Trans-Pacific partnership. Nevertheless, the real threat is leaving trade open to China which is planning for globalization. China can step into the breach to become the Great Influencer.
Trump has said that he will review the One China Policy which shows his reluctance in accepting Beijing’s dominance over Taiwan. This policy has always been the solid rock of China-US relations for decades and has managed to keep them at arms-length. Australia is not particularly concerned because it has always maintained good relationships with both China and the US but not if Trump asks Australia to make a choice.
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