President Xi Jinping congratulated President-elect Trump on his election victory and warned that the United States would “gain from cooperation and lose from confrontation” with China.
The message comes as the Chinese Communist Party (CCP) must brace for further escalation as President Trump promises to revive the trade wars of his predecessor's era with blanket tariffs.
“President Xi Jinping pointed out that history has shown that the two countries stand to gain from cooperation and lose from conflict. China-US relations with stable, healthy and sustainable development serve the common interests of both countries,” Chinese Foreign Affairs said. the ministry said in a statement. The state of the conversation.
“It is hoped that both sides will strengthen dialogue and communication, properly manage differences, expand mutually beneficial cooperation, and find the right path for China and the United States, based on the principles of mutual respect, peaceful coexistence and win-win cooperation. It is about living together in a new era for the benefit of both countries and the world. ”
Republicans took control of the Senate this week, giving them an advantage in the inconclusive House power struggle. With both houses of Congress and the Presidency under his control, President Trump will have little in the way of a tough sanctions regime.
Chinese President Xi Jinping congratulated President-elect Trump on his victory. (Xie Huanzhi/Xinhua News Agency, via Getty Images)
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U.S.-China relations have deteriorated in recent years, not just on trade, with China threatening U.S. allies such as the Philippines, Japan and Taiwan in the South China Sea. They are accused of sending Chinese nationals to spy on U.S. military bases and flying what appear to be surveillance balloons across the United States.
While President Trump ushered in an era of fierce trade competition and increased support for Taiwan, President Biden has not necessarily warmed up relations.
Trump raised tariffs on more than $300 billion worth of goods by at least 10% during his first term. Biden did not lift those tariffs.
This was in addition to export controls on various items that were initiated under the Trump administration and tightened under the Biden administration.
During this year's election campaign, Trump proposed imposing 10% tariffs on all U.S. imports and 60% tariffs on products made in China.
President Trump has promised to restart the trade war with China. (AP Photo/Alex Brandon)
The Chinese government is expected to announce bold economic stimulus measures on Friday to support an economy struggling amid weak consumption and deflation. (Wang Gan/VCG via Getty Images)
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Zhu Baoliang, former chief economist at China's Economic Planning Bureau, said at a Citigroup conference that if President Trump succeeds in raising tariffs to 60%, China's exports will decline by $200 billion, reducing its gross domestic product. He said there was a possibility of a decline of 1 percentage point.
Last year, China exported about $500 billion worth of goods to the United States, or about 15% of its total exports.
Stocks in mainland China and Hong Kong fell on Wednesday after it became clear that Trump would win the election.
Chinese exports rose 12.7% year over year in October in anticipation of a possible Trump victory, as Chinese vendors are likely to rush to ship products that could be subject to tariffs next year. reached its highest level in 27 months.
The Chinese government is expected to announce bold economic stimulus measures on Friday to support an economy struggling amid weak consumption and deflation.
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The United States and Europe recently raised tariffs on electric vehicles, clouding the trade outlook in a market long dominated by China.
China has taken significant steps to stimulate the market, including imposing tariffs on U.S. agricultural imports, restricting exports of critical minerals essential to U.S. defense, and targeting U.S. companies with interests in China. We are preparing weapons to counter US tariffs.
