Trump 2.0 and China: Next Stage Ahead

D. Trump’s approach towards China is shaped greatly by the political- and psychological legacy of its previous term in the White House. The trade war, that was the cornerstone of his China policy during his first term, has not achieved its primary goals. The economic confrontation between the USA and the PRC reflects the fundamental characteristics and peculiarities of their respective economic models, the contradictions between them, and their diversity being manifested in global trade and economy. The transition to a new phase of economic growth in China, marked by moving away from a dominant export orientation, is largely driven by efforts to develop the domestic market and boost internal consumption. PRC leaders have been highlighting this issue for a long time, but there has been no significant progress in addressing it. The current slowing down of the Chinese economy brings certain changes in the balance of power in the economic competition with the USA and China, creating a new contextual factor for bilateral relations during the Trump 2.0 period. The informal process of power transition from Xi Jinping has tacitly started in China, and his successor cannot help but arising sooner or later. Meanwhile, the intra-elite situation surrounding Xi Jinping can hardly be viewed as entirely calm and peaceful.

US-China relations, Trump administration, trade wars, US trade deficit, Taiwan issue, domestic political struggle in the PRC, internal consumption in the PRC, US-China technological rivalry