Xi Jinping warns Trump US would ‘lose from confrontation’ with China as renewed trade war looms

Prime Minister Xi Jinping reached out to President-elect Trump to extend his congratulations on his election victory and to emphasize the importance of cooperation between China and the United States. In a statement released by China’s foreign ministry, Xi Jinping highlighted the historical significance of collaboration between the two nations, stating that both countries have much to gain from working together and much to lose from confrontation.

As President-elect Trump prepares to take office, there are growing concerns about the potential for renewed tensions between the U.S. and China. Trump has made it clear that he plans to bring back the trade war that marked his previous presidency, with promises of imposing blanket tariffs on Chinese imports. This has raised alarm bells in Beijing, as such actions could have a significant impact on China’s economy.

In recent years, U.S.-China relations have deteriorated, with disputes over trade and territorial issues in the South China Sea. Trump’s aggressive stance towards China during his first term, including imposing tariffs on billions of dollars worth of Chinese goods, has left a mark on the relationship between the two countries. While President Biden did not immediately reverse these tariffs, the overall tone of U.S.-China relations did not improve significantly under his administration.

With Republicans now in control of both the Senate and the House, President-elect Trump will have the power to implement his proposed trade policies, including a 10% tariff on all U.S. imports and a 60% tariff on Chinese-made products. These measures could have a significant impact on China’s economy, with estimates suggesting a potential $200 billion reduction in exports and a one percentage point drag on GDP.

In response to the potential threat of increased tariffs, China is expected to unveil a stimulus package to support its economy. The country has also taken steps to bolster its markets and has a range of retaliatory measures at its disposal, including imposing duties on U.S. agricultural imports, export controls on critical minerals essential for U.S. defense, and targeting U.S. companies with interests in China.

As tensions between the U.S. and China continue to simmer, it is imperative for both countries to find a way to work together for the benefit of their economies and the global community. Prime Minister Xi Jinping’s message of cooperation and dialogue is a timely reminder of the importance of maintaining a stable and healthy relationship between the two superpowers. It is hoped that President-elect Trump will heed this advice and seek to find common ground with China in the coming years.