Gordon Chan: The US is in a ‘new Cold War’ with China
These days, it seems the U.S.-China trade conflict is evolving from just tariffs to a broader struggle for influence, with China seemingly leading the charge. It’s interesting how Beijing has been gradually fine-tuning various aspects like export controls and critical minerals while President Trump increases domestic production.
This shift could push Washington to respond to China’s strategies instead of dictating its own, which might shape their next conversation when Trump meets Chinese President Xi Jinping.
On Thursday, the two leaders are set to engage at the Asia-Pacific Economic Cooperation Conference in Busan, South Korea. It’s notably Trump’s first in-person interaction since his return to the presidency.
For Trump, this visit represents more than diplomacy; it’s a chance to showcase his economic philosophy. He’s trying to re-establish American prowess in global trade, using tariffs as leverage and as a method of pressuring both allies and rivals.
Brian Black, a senior policy advisor at the Heritage Foundation, shared some insight with Fox News Digital, stating that China possesses a broader range of actions at its disposal. They can respond to pressures more easily, especially given their reliance on U.S. industries.
He also pointed out that China has effectively been distancing itself from U.S. influence for quite some time. Many of their recent moves may seem like retaliation, but they’re actually part of a long-term strategy by Xi Jinping to lessen dependence on the U.S. and build independence in vital technologies. Unfortunately, for the U.S. to counter that successfully, they need to do something similar, which is, well, not easy.
Clark Packard from the Cato Institute mentioned that the idea that China holds the upper hand might actually be mistaken. He emphasized that while it’s a crucial geopolitical relationship, U.S. policymakers may be overestimating China’s economic power. There are serious internal imbalances in China’s economy, he noted, with a skew toward manufacturing at the expense of encouraging domestic consumption.
Henrietta Levin, a senior fellow at the Center for Strategic and International Studies, commented that it seems both Trump and Xi would prefer to ease tensions for now. “There’s a desire for stability,” she said, but the specifics of any deals they might negotiate are still uncertain since Beijing is confident about its stance in the trade war.
Levin also expressed concerns about America’s ability to endure economic hardship compared to China, suggesting it could lead to Washington feeling the pinch sooner in any trade conflict.
She believes a more cohesive strategy in forming partnerships—especially in Asia—is essential for countering China’s aggressive tactics. Furthermore, Levin argued that the U.S. must regain control of the diplomatic narrative, stressing that Washington should aim to establish terms for the relationship rather than merely reacting to China’s moves.
