English 
Spanish 
5 min read
0 comments
Chinese President warns President-elect Donald Trump: Confrontation between China and the US would harm both countries
The recent communication between the President of China, Xi Jinping, and the president-elect Donald Trump brings to the fore trade tensions that could shape the landscape economic global trade in the coming years. In a telephone conversation, Xi congratulated Trump on his election victory and at the same time warned of the potential losses that both countries would face if a new trade war were to be launched.
US-China trade relations
In recent years, relations between the United States and China have deteriorated, with tensions emerging in both the economic and national security areas. Trump, during his first term, imposed tariffs on more than US$300 billion worth of Chinese goods, which had a significant impact on trade between the world's two largest economies.
These sanctions, justified by the need to protect the American economy, also affected other countries and generated a restructuring of global supply chains.
Chinese President Xi Jinping has stressed the importance of cooperation for both economies, emphasizing that confrontation could harm not only the trade interests of the United States and China, but also global economic well-being. This view is shared by the Chinese Foreign Ministry, which has stressed the importance of a stable and cooperative relationship for world peace and development.
Main concerns of Xi Jinping, President of China
Xi said history clearly shows that the United States and China have much to gain from cooperation and much to lose from confrontation. According to the Chinese leader, a healthy and sustainable relationship between the two countries is crucial for both the prosperity of their economies and global stability. Xi's call for mutual respect and dialogue underscores Beijing's desire to keep differences managed peacefully.
In addition, China is seeking to explore ways to expand beneficial cooperation with the US, creating a mutually beneficial understanding. China's conciliatory stance reflects an attempt to avoid more serious conflicts that could negatively impact not only the two economies, but also trading partners and allies around the world.
The Impact of the Republican Senate
With Republicans in control of the Senate, Trump’s leverage on economic and diplomatic issues is enhanced, making it easier to implement sanctions and tougher trade policies against China. The Republican victory raises the possibility of a new round of tariffs, like those Trump suggested during his campaign – including a 60% tariff on Chinese goods.
These proposals have the potential to significantly affect the Chinese economy. Zhu Baoliang, the former chief economist at China’s economic planning agency, predicts that a 60 percent tariff increase could reduce Chinese exports by as much as $200 billion and cause the country’s GDP to drop by one percentage point.
Economic consequences for China and the rest of the world
Last year, China exported about $500 billion worth of goods to the U.S., accounting for 15% of its total exports. The threat of new tariffs has sent Chinese and Hong Kong stocks tumbling recently as Chinese companies ramp up exports of goods to avoid potential sanctions.
The prospect of a new trade war is also putting pressure on Beijing to take steps to protect its economy. China is expected to announce an economic stimulus package in the coming days, focused on reversing the slowdown in consumption and addressing the challenge of deflation. This package aims to cushion the impact of a possible tariff increase, as well as sustain domestic demand and strengthen strategic sectors.
Another relevant aspect is the impact of the tariff increase on the automotive and technology sectors. With Europe and the US applying additional tariffs on electric vehicles, an area dominated by China, the outlook for Chinese trade in this sector is being harmed. This scenario puts even more pressure on China to diversify its exports and seek alternatives that guarantee economic stability.
Chinese Retaliation Measures
If US tariffs are indeed increased, China has an arsenal of retaliatory measures that could significantly affect US companies with operations in China. These include taxes on US agricultural products, export controls on critical minerals, and even sanctions against US companies with interests in China. These actions could make the business environment even more volatile and uncertain, creating additional obstacles for international companies.
Another factor is China's stance on the South China Sea and its support for Taiwan, both flashpoints of tension with the US. These flashpoints pose a threat to regional stability and, if tensions continue to rise, could lead to an escalation of diplomatic confrontations.
With a new trade conflict looming, it is clear that both the US and China need to seek alternatives that favor cooperation. Xi Jinping's call reflects a desire to avoid unnecessary confrontations that would negatively affect the global economy. However, Trump's stance toward China indicates that the scenario of a trade conflict is far from being avoided.
The need for dialogue and mutual understanding becomes essential to avoid a new tariff war, which would harm not only both economies, but also the well-being of millions of people around the world.
Be the first to react!