Daniel Lacalle: China is strengthened, Europe is divided, the cost of ignoring Trump and LATAM in crisis
Daniel Lacalle: China is strengthened, Europe is divided, the cost of ignoring Trump and LATAM in crisis
In this Money & Markets program, Daniel Lacalle, alert about a deep change in the world economic order, focused on the tense relationship between the United States and China. As he explains, commercial negotiations between the two countries have cooled, and from Beijing, worrying signals arrive: the Chinese government prepares its population for a total commercial war and seeks to replace the US market with the European. Lacalle warns that many politicians in the European Union could be opening the door to China without demanding reciprocity, which could jeopardize European companies in front of a competitor with advantages in costs, technology and without regulatory restrictions.
Edmundo Rivera, economist, warns about global hypocrisy around protectionism and defends free trade as the engine of development. He points out that, although it is against tariffs, it includes its use as a geopolitical negotiation tool, especially by the Trump administration, whose main focus is China. Rivera criticizes the lack of structural reforms in Latin America, emphasizing that the main obstacles to growth do not come from international trade, but from internal barriers themselves such as processing, permissology, complex unions and tax systems. It emphasizes that only Mexico and, to a lesser extent, Chile have improved their productivity in recent decades, while the region as a whole has wasted opportunities to insert itself in global value chains. Calls to prioritize an agenda of procrecration and economic modernization, warning that many governments are still focused on ideological speeches instead of facing structural problems.
