President Xi Jinping recently reached out to President-elect Trump to congratulate him on his election victory and emphasized the importance of cooperation between the U.S. and China. Xi Jinping highlighted that both countries stand to benefit from collaboration and would suffer from confrontation. The Chinese Communist Party (CCP) is bracing for potential tensions as Trump has indicated a willingness to reignite trade disputes with China through the imposition of tariffs.
Xi Jinping stressed the significance of a stable and healthy relationship between China and the U.S., emphasizing mutual respect, peaceful coexistence, and win-win cooperation. The hope is to enhance dialogue, manage differences effectively, and expand mutually beneficial partnerships for the benefit of both nations and the global community.
With Republicans securing control of the Senate and favorable prospects in the House, Trump could face fewer obstacles in implementing stringent sanctions. Recent years have seen deteriorating U.S.-China relations, not only in trade but also in geopolitical tensions, such as China's actions in the South China Sea and alleged espionage activities.
During his presidency, Trump escalated trade competition and supported Taiwan, while President Biden did not significantly alter the trade policies set by his predecessor. Trump's tariffs on Chinese goods have had a substantial impact on China's exports, with potential plans for further tariff increases under his administration.
The anticipation of a Trump victory led to a surge in China's exports in October, with Beijing now considering a stimulus package to bolster its economy. The U.S. and Europe have also imposed tariffs on electric vehicles, affecting China's dominance in this market.
China is prepared to respond to U.S. tariffs with measures of its own, including duties on agricultural imports, export controls on critical minerals, and targeting U.S. companies with interests in China. The evolving trade landscape between the two nations underscores the complexities and challenges ahead in their economic relationship.
