Trump's Return to the White House: A Pivot to Cooperation with China?

Trump's Return to the White House: A Pivot to Cooperation with China?Bloomberg reported that while a new round of US chip restrictions on China is imminent, its content differs drastically from previous statements. Initially, the US planned to sanction six key Chinese semiconductor suppliers, including Huawei

Trump's Return to the White House: A Pivot to Cooperation with China?

As the world watched closely for Trump's 2025 approach to China, his late-night tweet announcing a 10% tariff on Chinese goodsfar lower than the widely anticipated 60%sent shockwaves. This unexpected move is just one piece of a larger puzzle indicating a significant shift in US-China relations. Recent concessions, particularly in the technology sector, highlight a change in American strategy. China's breakthroughs in advanced technology, especially in semiconductors, despite a later start, have forced a reassessment of the confrontational approach. The fundamental reason for this shift is the rise of China's power, compelling Western nations to recalibrate their strategies from confrontation to cooperation.

A Major Turning Point in the Chip War: A Change in US Tactics

Bloomberg reported that while a new round of US chip restrictions on China is imminent, its content differs drastically from previous statements. Initially, the US planned to sanction six key Chinese semiconductor suppliers, including Huawei. This has been significantly scaled back to sanctions on only some of Huawei's suppliers. Crucially, sanctions have been loosened in the AI chip sectorconsidered a high-growth areaand Changxin Memory Technologies has been excluded from the sanctions list. This marks a significant turning point in the chip and technology war initiated against China in 2018.

From a 10% tariff reduction to a narrowed scope of chip sanctions, Trump's administration signals a major policy shift towards China. A growing sentiment among US Democrats and establishment figures suggests that a Trump presidency might even benefit China. They argue that Trump's aggressive tariff policies could exacerbate US-EU tensions and accelerate European cooperation with China. Indeed, during Trump's first term, the EU-China Comprehensive Investment Agreement was nearing completion, and combined with the Nord Stream 2 pipeline project, a vast economic alliance spanning Eurasia and encompassing three major economies (China, Europe, and Russia) was almost realized. However, the Biden administration, through instigating the Russo-Ukrainian conflict and the destruction of the Nord Stream pipeline, effectively scuttled this potential alliance.

Misjudging Trump and His Team: A Broader Perspective Beyond Sino-American Rivalry

The tendency to label Trump and his cabinet members as "anti-China" leads to a severe misjudgment of international trade strategy. Trump's target wasn't solely China, but any nation profiting from its dependence on the US economic behemoth. Upon his return, hes likely to continue his efforts of withdrawing from US-led trade agreements and rejecting what he sees as exploitative arrangements. For example, he previously demanded increased military spending from countries hosting US troops to reduce US expenditure.

Trump's core objective is simple: reduce foreign spending and prioritize domestic financial resources. China's advancement in the semiconductor industry, impacting US and allied exports, has forced a strategic recalibration. The reduction in trade and technology sanctions stems from the impact of China's growth in certain sectors on US interests.

A Dawn of Improved US-China Relations?

For the US, imposing tariffs and doing business with China are distinct matters. While many anticipated a hawkish figure as Secretary of Commerce, Trump surprisingly appointed Gina Raimondo. Raimondo has extensive ties to China, possessing a financial joint venture conducting currency and foreign exchange operations, and a track record of assisting Chinese companies in US listings. This, alongside Tesla CEO Elon Musk's support for his election, suggests a key element of Trump's administration will have close ties to the Chinese economy.

Furthermore, Raimondo has publicly expressed her belief that tariffs should enhance US competitiveness, not indiscriminately target Chinese imports. Trump's inherently transactional approach, driven by self-interest, contrasts sharply with US politicians primarily focused on political donations and short-term gains. His capacity to shift alliances and redefine enemies differs significantly from the more rigid Democratic mindset.

In conclusion, despite market volatility, the first month post-Trump election shows maturing policies, decreased targeting of China, and signals of cooperation. Bloomberg's report bolstered Chinese markets, with significant gains in the Shanghai Composite Index, the STAR Market, and particularly within the semiconductor and AI sectors. The offshore yuan also appreciated, suggesting a lessening of threats to Chinese assets and positive prospects for future economic relations. (Source: Wall Street News: Biden administration considers further restrictions on chip exports to China, measures expected to be announced as early as next week)

Disclaimer: The content of this article is sourced from the internet. The copyright of the text, images, and other materials belongs to the original author. The platform reprints the materials for the purpose of conveying more information. The content of the article is for reference and learning only, and should not be used for commercial purposes. If it infringes on your legitimate rights and interests, please contact us promptly and we will handle it as soon as possible! We respect copyright and are committed to protecting it. Thank you for sharing.(Email:[email protected])