408 | Mathias Döpfner: Escaping the Trade Trap - How to Stop Doing Business with Dictators
Sep 21, 2023
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Mathias Döpfner, CEO of Axel Springer, proposes a new trade regime based on a values-based alliance of democracies, discusses Germany's foreign policy post-Ukraine invasion, and shares insights from encounters with figures like Putin and Jack Ma in his book 'The Trade Trap'.
A values-based alliance of democracies should be formed to create a new trade regime excluding authoritarian regimes and protect democratic values.
Engaging in trade with authoritarian regimes does not lead to their democratization, and a new trade order based on rule of law, human rights, and CO2 emissions targets is needed to strengthen democracies and protect their values.
Deep dives
The Trade Trap: A Proposal for a New Trade Partnership
Matthias Daufne, the CEO of Axel Springer, discusses his new book 'The Trade Trap' which proposes a new trade partnership excluding authoritarian regimes. He emphasizes the need for a broader alliance of democracies to address the future challenges posed by Russia and China.
Meeting Vladimir Putin and Observations of his Leadership
Daufne recounts his meeting with Putin in 2005 and shares his observations. He describes Putin's initial image as someone modernizing Russia and driving it towards democracy, but also sensed an element of anger and aggression. Taking lessons from this encounter, Daufne discusses the need for a stronger Western alliance and the failure of Western countries, particularly Germany, in dealing with Russia.
The Need for a New Trade Order and the Failure of Change Through Trade
Daufne highlights the failure of the idea that engaging in trade with authoritarian regimes would lead to their democratization. Citing China as an example, he points out that trade has only strengthened non-democratic countries and empowered autocrats. Daufne argues for a new trade order based on three membership criteria: acceptance of the rule of law, human rights, and CO2 emission targets, in order to strengthen democracies and protect their values.
The Challenge of China and the Urgency for a Transatlantic Alliance
Daufne expresses concern about China's aggressive behavior and potential threat to Taiwan. He urges Europe and the United States to reestablish a strong transatlantic alliance and form a trade alliance of democracies to counter China's dominance. Daufne emphasizes the need for cooperation and bold action to address security, competition, and climate challenges, asserting that isolationism would be detrimental to both Europe and America.
Mathias Döpfner, Chairman & CEO of Axel Springer SE, the biggest digital publisher in Europe and owner of U.S. media brands Insider, Morning Brew, and Politico, joins The Realignment. Mathias is the author of a new book: The Trade Trap: How to Stop Doing Business with Dictators. Marshall and Mathias discuss his proposal for a new trade regime based upon a values-based alliance of democracies, the cost of doing business with dictators, Germany's revamped post-Ukraine invasion foreign policy, and how encounters with figures from Vladimir Putin to Jack Ma shaped the book's perspective.
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