Despite past trade tensions, China is optimistic about the potential for improved relations with the US under President Trump's second term. Trump's signals of willingness to negotiate and his delay in implementing punitive tariffs have been perceived as positive by Beijing.
Donald Trump ’s second term in office is getting off to a good start for China. The new US president has so far refrained from acting on his threat to slap hefty tariffs on China, told business and political leaders at an economic forum in Davos that the two countries could have a “very good relationship” and reportedly expressed interest in visiting the Chinese capital in the months ahead.
Trump even gave a 75-day reprieve to Chinese-owned app TikTok and signaled he would look to dilute a law requiring the company divest its American business or be banned. All this adds up to a strong signal that the returning president is willing to talk – and cut deals – with China. At least for now. That is welcome news for Beijing, which has been bracing for a tumultuous period in US-China relations as Trump stacked his cabinet with China hawks and campaigned on levying high tariffs on all Chinese imports to the US. “China realizes that there is an opportunity to negotiate with Trump,” said political scholar Liu Dongshu of the City University of Hong Kong. “And a better US-China relationship is more important to China than to the United States … so China is eager” to engage. Stakes are high for Beijing, as a tit-for-tat trade war like the one during Trump’s last administration would hit China’s ailing export-reliant economy at a bad time. And Chinese leaders have been keen to seize on the opportunity to soften Trump’s hard line. Xi called for a “new starting point” in US-China ties during a call with Trump days ahead of the inauguration and dispatched Vice President Han Zheng to the US capital to attend the swearing-in ceremony, the seniormost Chinese official ever to attend such an event. Meanwhile at the World Economic Forum in Davos this week, Vice Premier Ding Xuexiang said China wants to “promote balanced trade,” not “surplus” with the world – striking a note that appeals directly to Trump’s chief complaint about the relationship between the two largest economies. But China’s policymakers are also under few illusions about how quickly the tenor of US-China relationship could change – and are likely carefully calculating how to use the current breathing room to negotiate with the “art of the deal” president in the months ahead. Containing the tariff threat? Looming over this period of tone-setting is a “phase one” trade deal brokered during the last Trump administration. The 2020 deal marked a truce in a tit-for-tat trade war that saw Trump heighten or impose tariffs on hundreds of billions of Chinese imports to the US – an act he claimed would level the playing field with China and that has largely stayed in place since. Now that deal, which analysts say Beijing never fully implemented, is part of a larger probe of US-China economic and trade relations that Trump called for in an executive order on his first day in office. The review will guide whether the White House imposes duties on China but is expected to take months. Also unclear is whether Trump will deepen export controls on sensitive technologies implemented by former President Joe Biden. That gives Beijing time to build a relationship with Trump, entertain him in Beijing or push for a pre-emptive deal to avert more severe economic penalties. “China has realized Trump can be negotiated with, but he is a different, new Trump – what we committed to last time may not satisfy his new desires,” said Shanghai-based foreign affairs analyst Shen Dingli. This time, instead of being “coerced” into a tit-for-tat trade war by Trump, Beijing may do better to “smile, stay calm, and start talking with him,” Shen said. Tariffs on 10% of Chinese imports into the US could still come as early as next month in retaliation for what Trump described as the role played by Chinese suppliers in America’s fentanyl drug crisis. But those are a far cry from the 60% duties he campaigned on – and observers of China’s foreign policy say Beijing is likely looking at those threats as levers it could pull to mollify Trump. For example, Chinese officials could move to implement more of the existing “phase one” deal and further open China’s huge market to foreign firms. They also could take additional actions to stem the export of precursor chemicals used to make the fentanyl. In China’s domestic debates about foreign policy, many pundits too are advocating dialogue and cooperation on the economy rather than hard lines. Jia Qingguo, a former dean of Peking University’s prestigious School of International Studies, expressed as much in a recent interview with state-linked financial publication Yicai. “Rather than adopting a blanket veto of all US proposals,” China should “analyze which issues require opposition and which can be cooperated on based on our own interests,” he said. If Trump does visit Beijing in the coming months, a trip sources close to the president have suggested he is eyeing, that will also give Beijing a key opportunity to woo the US leader
DONALD TRUMP CHINA US-CHINA RELATIONS TRADE WAR TARIFFS ECONOMIC POLICY DIPLOMACY
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Bernice King Sees Opportunity in MLK Jr. Day Overlapping with Trump's InaugurationBernice King, daughter of the late civil rights leader Martin Luther King Jr., sees the coincidence of MLK Jr. Day falling on the same Monday as Donald Trump's inauguration as an opportunity for reflection on her father's legacy. She urges Americans, particularly those feeling defeated, to stay focused on the nonviolent principles championed by her father.
Read more »
Mac Jones Sees Opportunity in Jaguars' Season FinaleDespite the Jacksonville Jaguars and Tennessee Titans both having disappointing seasons, Mac Jones views their final game as a chance to showcase his skills. This comes as Jones is entering free agency and wants to make a good impression on potential teams.
Read more »
Mizuho Sees Opportunity in Materials Sector Despite SlumpDespite the materials sector's struggles, Mizuho analysts identify attractive investment opportunities in downstream, asset-light companies like DuPont and Linde.
Read more »
Bank of America sees an opportunity to grab solid yields using these assetsCard-description
Read more »
BlackRock's Rieder Sees Dip in Big Tech Stocks as Buying OpportunityBlackRock's chief investment officer of global fixed income, Rick Rieder, believes the recent decline in big tech stocks is a positive sign for investors, urging them to capitalize on the opportunity to purchase these companies at discounted valuations. He emphasizes the long-term growth potential of these companies, highlighting their dominant positions in productivity-enhancing sectors and their positive impact on consumers. Rieder also anticipates stabilization in Treasury yields and projects a 'decent' year for the equity market, with a potential return of 15% in 2025.
Read more »
Polestar CEO Sees Opportunity in Musk ControversiesPolestar's new CEO, Michael Lohscheller, believes the brand can attract Tesla customers dissatisfied with Elon Musk's political stances. Lohscheller criticizes Musk's support of right-wing parties and foreign interference in politics, suggesting an opportunity for Polestar to appeal to those seeking an alternative. While facing financial challenges and a need for growth, Polestar aims to capitalize on this situation by targeting disgruntled Tesla owners.
Read more »