population of the US. The population has brought demographic dividends for China’s economic growth. The cheap labour force has promoted the rapid development of China’s manufacturing industry and increased the number of exports, contributing to the GDP. However, as China’s aging population increases, the demographic dividend gradually disappears. Therefore, China’s 13th Five-Year Plan promotes a comprehensive two-child policy and encourages the birth of a second child to avoid excessive population aging and the reduction of the labour force in the future. The huge population base means great potential of market.

The above analysis shows the US’s position as the world’s largest economy is stable. The US has strong political and economic influence. Trump’s policies show obvious protectionism and economic nationalism, especially in trade, which is contrary to globalisation and makes the US suffer from isolation pressure. As for China, its manufacturing industry has always maintained a leading position in the world. However, its economy is heavily reliant on exports and manufacturing. The overall industrial structure does not present long term advantage in the international competition. However, as China advances from low-end manufacturing to high-end manufacturing and supports the development of service industries, the competitiveness and advantages of China’s manufacturing industry will expand. If the transformation is successful, then China’s overall economic competitiveness will increase, and the increase in domestic consumer demand will mean market growth.

The interaction of the US, China and other economies

The EU is one of the most economically developed regions in the world. Economic integration has strengthened the EU’s economy. However, it has not completely recovered from the 2008 financial crisis. In addition, the sovereign debt crisis weakened the EU’s GDP growth. Furthermore, high unemployment and refugee problems have raised questions regarding the EU’s credibility. The people’s nationalist sentiment is rising. UK’s Brexit is the result of nationalism. In fact, nationalism is also spreading in other parts of the world. “The resurgence of economic nationalism threatens to derail seven decades of progress toward a more open global economy not only in EU.” (Alogoskoufis, 2017). The main victims of Trump’s trade barriers and steel tariffs are its allies. That made the EU uneasy and it stated that it would impose retaliatory tariffs on steel and motorcycle imports from the United States to rebalance bilateral trade. The value of the affected goods was 3.5 billion U.S. dollars. Trump’s withdrawal from the TPP, negotiating NAFTA and tax reform policies all show his protectionism, which will attract companies to return to the US and prevent too much investment in other economies, especially emerging economies. China is the EU’s largest trading partner. China’s huge market has enabled the EU to increase exports. China and the EU are in a mutually beneficial, win-win relationship in certain areas. The UK disregarded the US’s opposition and joined AIIB. After that, other EU member states joined AIIB, which has helped the int