Wall Street titans fail to explain Trump to China
China is struggling to understand the Trump administration and its mercurial leader – so it’s turning to America’s businessmen to provide insight
This story is being published by the South China Morning Post as part of a content partnership with POLITICO. It was reported by Victoria Guida and Ben White and originally appeared on politico.com on July 6, 2018.
As China and the United States escalate a trade war, the Chinese government is turning to familiar Wall Street and Washington insiders for advice on understanding President Donald Trump – with underwhelming results.
Corporate leaders and former US officials who have spent years cultivating relationships with Beijing – such as Blackstone CEO Steve Schwarzman, JPMorgan Chase CEO Jamie Dimon and former Treasury Secretary Hank Paulson – have been fielding calls from Chinese officials anxious for information on what is driving US actions on the trade front.
US, China begin ‘biggest trade war in economic history’
But even administration officials are often at a loss to predict what the president might do on a given day, and people close to Schwarzman, Paulson and Dimon say their informal efforts to guide the Chinese on dealing with the Trump administration have been frustrating and generated little success.
“It has certainly not been for a lack of trying,” a person close to Schwarzman said.
For the Chinese, it’s an opportunity to maintain good relationships with business leaders who invest heavily in their economy. For Wall Street executives, it’s a chance to work both sides in an effort to head off a trade war that could roil markets and dent economic growth – and their bottom lines.
The Chinese know they will have to make concessions, but they don’t know what they are and who really speaks for the president