New currency of hard power

If China is an exporting superpower, America is an importing one. Mr Trump has turned what would usually be a liability into an asset

- SHEKHAR GUPTA

It’s still night time in America asI write this, and we don't know what Truth Social posts we'll see in the morning, or what new geopolitical shift they might signal. But we are beginning to get some clarity on his method now.

Three days back, as US President Donald Trump was setting out for a three-nation Asia tour, he put out a shockingly disjointed and dangerous post. He said, “['m asking for nuclear testing to be resumed so that [we are] at the same level as China and Russia,” and then ranted and rambled along.

Nuclear testing doesn’t scare anybody. Russia and China have much uranium to spare. This, therefore, wasn't going to set off anew nuclear arms race.

The dangerous part was how a man so powerful could sound so unhinged. I know there's a Trump fan club out there. See how Xi Jinping flattered him, President of peace, etc. The worldhastoseesome genius in whatever Mr Trump says. It was said, “Oh, he was trying to soften the Chinese with that post.” Butthe Chinese are not going to be scared by nuclear tests. It was more like he knew he was going to capitulate, which he did.

This world is being restructured and redrawn by one man. What's his power? It’snot his formidable military. It’s trade. With China, it turned on him.

Mr Trump has understood, paradoxically, the power of being the largest importer from much of the world. If China is an exporting superpower, America is an importing one. Mr Trump has turned a liability into an asset. If China, Japan, South Korea, Vietnam are all exporting powers, who do they get their surpluses from? You canadd India. MrTrump issaying —I know how important these surpluses are for you. Thave the importer’s leverage.

His $30 trillion economy being the largest trade-deficit holder against all major countries is power in the Trump world. Remember, he credits tradealsoforhisclaims ofbringing about an India-Pakistan truce.