Chinese Foreign Minister, Wang Yi while speaking at a symposium stated: “We hope that the new US administration will make the right choices, meet China halfway, cease all interference, overcome obstacles, strive to enhance Sino-US relations, and achieve stable, healthy and sustainable development,”
He also highlighted the fact that global instability and uncertainty is likely to rise, but China would play an important role in ensuring peace and preventing geopolitical turmoil.
Wang Yi’s remarks came in response to incoming US President Donald Trump’s remarks, where the latter had hoped that Beijing and Washington could work jointly to resolve global issues. Trump praised Chinese Xi Jinping and stated that the Washington-Beijing relationship had witnessed a downturn after the covid-19 pandemic. Ties between the US and China had begun to go downhill after the imposition of tariffs by Trump. Covid19 further exacerbated the tensions between Washington and Beijing. It is not just economic ties, but people to people linkages have also been impacted due to the downturn in ties.
Joe Biden — who succeeded Trump in 2021– also essentially carried on with Trump’s approach vis-à-vis China, though despite the strains between both countries he understood the importance of diplomatic engagement with Beijing. Biden also reiterated the point that ‘competition’ should not turn into ‘conflict’ and understood the fact that Beijing and Washington needed to work on global issues – especially in the aftermath of the Russia and Ukraine war.
If one were to look at Trump’s statements during the election campaign — and after — it is unlikely that there will be any change in his approach vis-à-vis China. Trump has said that he would impose 10% additional tariffs on Chinese goods. His team also consists of China hawks including – incoming US Secretary of State, Mike Rubio, US Defense Secretary, Pete Hegseth and National Security Advisor Mike Waltz. Waltz has referred to China as an “existential threat”.
At the same time, Elon Musk, CEO of Tesla and co-head of the newly created Department of Government Efficiency (DOGE) has a strong stake in stable ties with China. Musk has close ties with Senior leaders in the Communist Party – especially Chinese Premier Li Qiang . Earlier this year, Musk had visited China and met with Chinese Premier Li Qiang and said:
“We have known each other now for many years, since early Shanghai days”.
The US billionaire has referred to China as “amazing”.
Trump’s pick for US Ambassador to China
Trump’s choice for US Ambassador to China, David Perdue, is someone who understands Asia in general and China in particular though he has also been labelled as a hawk. After nominating him, Donald Trump in a social media post said:
“As a Fortune 500 CEO, who had a 40-year international business career, and served in the US Senate, David brings valuable expertise to help build our relationship with China. He has lived in Singapore and Hong Kong, and worked in Asia and China for much of his career,”
After being nominated Perdue made the point that he had worked in Asia and he would seek to effectively represent US interests. Perdue’s role will of course depend a lot on Trump’s approach vis-à-vis China and how things pan-out in economic and geopolitical terms in the coming months.
Why other countries in Asia would be keeping a close watch on Trump’s China policy
ASEAN countries would be closely watching the US-China relationship since they have benefitted from good ties between both countries and in recent years the downturn in the relationship has also impacted them. Several ASEAN countries have highlighted their scepticism regarding tensions between Beijing and Washington DC and have on more than one occasion also stated that they would not like to be in a position where they need to make a choice between both countries. India too would be closely watching the trajectory of US-China ties, while New Delhi-China ties had witnessed a downward trend in 2020, both countries have been moving towards putting the bilateral relationship on track. Trump has also warned that he would impose 100% tariffs on countries – specifically BRICS nations — going in for de-dollarisation – this includes both China and India. India in response to Trump’s statement has categorically stated that it has not advocated de-dollarisation. While in the aftermath of sanctions imposed upon Russia, there is no doubt that India has been pushing for trade in local currencies it has been sceptical regarding the idea of a BRICS currency and senior Indian officials reiterated the point that while India was seeking to reduce its dependency upon the US dollar, it was not seeking to de-dollarize.
On December 16, 2024, Trump while addressing a news conference also reiterated the point that if any country including India imposes tariffs, the US would not shy away from imposing “reciprocal tariffs”. Trump had earlier called India a “big abuser” of tariffs.
Conclusion
In conclusion, there are some fundamental divergences between China and the US, but both countries need to have a working relationship to ensure a modicum of global stability. They will need to work together to find solutions to the Russia-Ukraine crisis as well as the conflict in the Middle East. A lot ultimately will depend upon Trump’s China policy and the global geopolitical landscape. Statements by Trump and the Chinese Foreign Minister are important, but the US-China relationship during Trump 2.0 will be dictated by several factors and complexities. With Trump in the saddle one thing which can not be ruled out is ‘unpredictability’.
