Trump in China: What Malta Can Learn from the Superpower Summit

As Air Force One touched down in Beijing, the world watched as US President Donald Trump began his state visit to China. But why should Malta care about this superpower summit? Let’s dive in.

Why Malta Should Take Note

Malta, a small island nation in the Mediterranean, might seem far removed from the geopolitical power play between the US and China. But look closer. Our strategic location, coupled with our strong economy and stable political environment, makes us an attractive hub for international investment. And that’s where the Trump-Xi summit comes into play.

China is Malta’s largest trading partner outside the EU. In 2017, bilateral trade reached €1.2 billion. Meanwhile, the US is our second-largest trading partner, with bilateral trade amounting to €1.1 billion in 2017. The decisions made by Trump and Xi could significantly impact Malta’s economic scene.

Trump’s Trade Agenda: A Blessing or a Curse?

Trump’s ‘America First’ policy has been a thorn in China’s side, with the US president repeatedly accusing China of unfair trade practices. The summit in Beijing could see Trump pushing for a more balanced trade relationship. But what does this mean for Malta?

Malta’s economy is heavily reliant on trade. According to the National Statistics Office, trade accounted for 97% of Malta’s GDP in 2017. A trade war between the US and China could disrupt this flow, leading to increased uncertainty and potential economic instability.

However, there’s a silver lining. Malta’s strategic location could make it an attractive alternative for businesses looking to avoid potential tariffs. Imagine Chinese companies setting up shop in Malta to access the European market, or US companies doing the same to serve the African market. It’s a win-win situation.

Xi’s Belt and Road Initiative: Opportunity Knocks

Xi Jinping’s Belt and Road Initiative (BRI) is a massive infrastructure project aimed at connecting China with the rest of the world. Malta, with its strategic location between Europe, Africa, and the Middle East, is a natural fit for this project.

In 2018, Malta and China signed a memorandum of understanding to explore cooperation under the BRI. This summit could provide the impetus for concrete action. Imagine Chinese investment flowing into Malta, creating jobs, and driving economic growth. It’s not a pipedream; it’s already happening in other parts of Europe.

But we must tread carefully. The BRI has been criticized for saddling participating countries with unsustainable debt. We must learn from these lessons and ensure that any Chinese investment in Malta is sustainable and beneficial in the long run.

What’s Next for Malta?

As Trump and Xi sit down for their summit, Malta should be paying close attention. We’re a small island, but we’re not insignificant. Our location, our economy, and our political stability make us an attractive partner for both the US and China.

But we can’t just sit back and wait for the crumbs from the superpowers’ table. We need to be proactive. We need to engage with both the US and China, to understand their priorities and to make our case for why Malta is an ideal partner.

Let’s not forget, Malta is a small island with big ambitions. We’ve punched above our weight in the past, and we can do it again. So, let’s watch the Trump-Xi summit with interest, but let’s also roll up our sleeves and get to work. Because our future isn’t in Beijing or Washington; it’s in our hands.