Yet over time, China could overcome those disadvantages. It "has all the necessary prerequisites to make an Asian-based trading bloc work without the U.S.: a large domestic market, political support for open markets and manufacturing expertise," writes Larry Brainard of TS Lombard, an investment advisory. China already does more trade in manufactured and intermediate goods with the European Union than the U.S., and twice as much with the rest of Asia, he notes.
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