Trade, Taiwan and now Trump: China braces for a volatile new era in U.S. ties

In a message on Thursday Chinese President Xi Jinping emphasized the importance of fostering harmonious relations and cooperation with President elect Donald Trump acknowledging the strained ties between the two superpowers and the potential challenges posed by Trumps upcoming return, to the White House in maintaining stability.

Trumps election victory could introduce a wave of uncertainty into what is frequently referred to as the most crucial relationship between nations worldwide – a pivotal moment for the top two economies, on the planet.

Relations between the United States and China have reached a low due to issues related to trade conflicts and tensions surrounding Taiwan and the South China Sea disputes that have persisted for decades. In times though the Biden administration has initiated efforts to foster better communication and collaboration with Beijing. A critical economic partner for Washington but also viewed as a significant strategic rival, in the long term.

An escalation of tensions between the U.S and China would not impact the global economy but also have significant repercussions for American allies in the Asia Pacific area, like South Korea,Japan and Australia.

Xi was one of global leaders who promptly extended congratulations to Trump and expressed that cooperation between the U.S and China would be mutually beneficial while confrontation would lead to losses as, per Xinhua. Chinas state owned news agency stated on Thursday.

"He encouraged the two nations to discover the approach to coexist in this new period for the mutual benefit of their countries and the global community " as, per the statement provided.

"We acknowledge the decision made by the citizens of America " stated the Chinese Foreign Ministry today.

Rick Waters from Eurasia Group mentioned that Trumps comeback to the White House didn't come as a surprise to those, in Beijing.

Chinese authorities did not view either Trump or his Democratic opponent Vice President Kamala Harris as attractive choices at a time when adopting a tough stance, on China seems to be the only issue both political parties can find common ground on.

According to Waters from Chinas point of view Trump’s initial term was split into two parts. A phase centered around tariffs and trade deal negotiations from 2017 to 2019 which he termed as a "transactional period " and a phase in 2020 characterized by tension and accusations, between both nations regarding the onset of Covid 19 that led to a strained relationship termed as an "angry period."

During that time frame the United States shut down the consulate located in Houston and in response China closed the U.S consulate, in Chengdu.

Beijing is currently deciding between the approach and the confrontational one " according to Waters. They are getting ready, for both scenarios."

In the state media reports on Thursday conveyed a sense of cautious hopefulness.

China Daily, a state run newspaper expressed that a potential second term for President Trump could signify a start in relations, between China and the United States provided the opportunity is not squandered.

Chinese authorities, who are meticulously focused on reviving their struggling economy are also aware of the tariffs exceeding 60% promised by Trump that would apply to all imports, from China.

According to CNBCs report if Harris had won of him Beijing might announce a stimulus package this week that is 10 20 % larger, than originally planned.

When questioned about the imposition of tariffs by Trump, on Thursday Chinese Foreign Ministry representative Mao Ning declined to entertain hypothetical scenarios pointedly stating that "nobody benefits from a trade war."

China has raised concerns about the United States attempting to limit its progress through export regulations and constraints on industries like semiconductors that are deemed strategic by both countries. Someone China might seek assistance from is Elon Musk—a tech mogul known for his support of former President Trump and his significant business ventures in China which have garnered him popularity, in the country.

Ian Bremmer of Eurasia Group mentioned that the Chinese are anticipating that Elon Musk could potentially bring about an approach, towards technology policies instead of being overly restrictive.