Europe, Southeast Asia, and developing economies closely watch the superpowers’ interactions, as their policies ripple across global markets and geopolitical landscapes
The phone call between Donald Trump and Chinese President Xi Jinping on Friday (17 January) signals a potential pivot in US-China relations. With both leaders vowing to improve ties, the conversation touched on critical issues like trade, fentanyl, and TikTok, highlighting the high stakes of their complex relationship. This dialogue offers a glimpse into the dynamics of Trump’s impending presidency and its potential to reshape the global order.
A Promising Start Amid Tensions
Xi Jinping’s expressed hope for a “good start” in relations and Trump’s assurance to address “many problems together” underscore a willingness to mend fences. Despite Trump’s history of antagonistic policies towards China, including tariffs and accusations over fentanyl, the call marked a rare moment of optimism.
Trump’s rhetoric during his campaign and presidency has often been confrontational. He threatened to impose a 10% tariff on Chinese products, citing national security concerns and the opioid crisis tied to fentanyl. Yet, his admiration for Xi and openness to dialogue suggest a dual strategy of pressure and negotiation.
Key Issues Discussed
The call touched upon several contentious topics:
Trade Imbalances: Trump’s previous administration levied tariffs on Chinese goods, which remain a point of contention. Both leaders signaled the importance of addressing trade deficits and fostering fair economic practices.
Fentanyl Crisis: Trump accused China of enabling the flow of fentanyl’s chemical components into Mexico and the United States, contributing to tens of thousands of overdose deaths annually. Tackling this issue is a priority for his administration.
TikTok and National Security: The looming deadline for TikTok’s owner, ByteDance, to sell the platform or face a ban epitomizes the intersection of economic interests and national security concerns. Trump’s campaign pledge to save TikTok contrasts sharply with Congress’s stance, reflecting a nuanced approach to balancing security and diplomacy.
The Threat of a 10 Percent Tariff on Chinese Products
One of Trump’s most contentious proposals is the imposition of a 10% tariff on Chinese products. This move is intended to address accusations that China facilitates the flow of fentanyl’s chemical components into the United States, contributing to a devastating opioid crisis. While framed as a national security measure, the tariff also reflects Trump’s long-standing concerns about trade imbalances and unfair practices. Such a tariff would add to the existing duties from his first term, further straining economic ties between the world’s two largest economies. Critics argue that escalating tariffs could hurt American consumers and businesses by raising costs, while proponents view it as necessary leverage to pressure China into addressing trade and security concerns. The tariff threat underscores the delicate balance between confrontation and cooperation in US-China relations.
Challenges to Improved Relations
Despite the promising tone, significant challenges loom:
Geopolitical Rivalry: Marco Rubio, Trump’s nominee for Secretary of State, labeled China as the “most dangerous near-peer adversary” the US has ever faced. Such rhetoric risks escalating tensions.
Trade Wars: Xi Jinping’s warning that trade wars have “no winners” highlights the mutual economic harm of prolonged disputes. Balancing economic competitiveness with cooperative strategies will be critical.
Trust Deficit: Accusations of propaganda, espionage, and cyber threats have eroded trust between the two nations. Rebuilding confidence will require transparent communication and tangible actions.
A New World Order?
Trump’s statement that he and Xi would “do everything possible to make the World more peaceful and safe” hints at an ambition to redefine the global order. If the US and China can find common ground, their collaboration could stabilize global trade, address climate change, and manage security threats. Conversely, failure to reconcile differences could deepen divisions, fragmenting international alliances and institutions.
The evolving US-China relationship also has implications for other nations. Europe, Southeast Asia, and developing economies closely watch the superpowers’ interactions, as their policies ripple across global markets and geopolitical landscapes. The potential for a new world order depends on whether Washington and Beijing can transform rivalry into partnership.
Opportunities and Risks
The Trump-Xi call marks a tentative step towards improved ties, but it remains to be seen whether words will translate into action. With a fraught history and significant obstacles, the path forward is uncertain. However, the stakes—ranging from economic stability to global peace—underscore the importance of fostering a constructive US-China relationship. Trump’s upcoming presidency offers an opportunity to reset the trajectory of this critical bilateral relationship, shaping not only their nations’ futures but the global order itself.
