Chinese officials and citizens are cautiously optimistic but apprehensive as Donald Trump prepares to return to the White House, aiming to avoid a repeat of the trade war that strained U.S.-China ties during his first term.
Ahead of Trump’s inauguration, Chinese Vice President Han Zheng met with Tesla CEO Elon Musk and U.S. business leaders in Washington, urging American companies to “take root” in China and foster stable relations. Han’s remarks, reported by Xinhua, reflect China’s hope to mend ties after Trump imposed over $300 billion in tariffs on Chinese imports during his presidency. Trump has recently vowed to add at least 10% in additional tariffs, a potential blow to China’s fragile economy.
In a conciliatory gesture, Trump invited Chinese President Xi Jinping to his inauguration, though Xi sent Han as his representative. Han’s meetings, chaired by FedEx CEO Rajesh Subramaniam, were described as productive and cordial, signaling goodwill.
Despite optimistic exchanges, including a positive phone call between Xi and Trump, memories of the previous trade war linger. Businesses like Lira Solutions in Suzhou are taking precautions, demanding advance payments to shield against potential tariff hikes.
China, facing economic struggles from a property crisis, local debt, and high youth unemployment, is more vulnerable than in 2018. Beijing residents, like a 36-year-old surnamed Wang, expressed concern over the uncertain economic outlook and Trump’s unpredictability.
The lasting impact of the previous trade war has led foreign firms to diversify into alternative markets like Vietnam, further complicating China’s recovery. U.S. institutional investors have also reduced exposure to Chinese ventures, with experts expecting Trump’s policies to sustain this trend.
As both nations aim for a “new starting point,” skepticism about long-term stability persists.
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