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China Briefing
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Wang Xiangwei

China Briefing | Why Trump’s trade war is a blessing in disguise for Chinese leaders

Tariffs and the US president’s bluster are tightening the screw, but could be a much-needed reminder of China’s real strength and limitations

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US President Donald Trump has escalated his battle with China. Photo: AP
US President Donald Trump greatly escalated his trade war against China last week by levying tariffs on Chinese goods worth US$200 billion, prompting China to return fire with tariffs on US$60 billion of American goods.
As Trump threatens to impose duties on virtually all Chinese imports, many investors and analysts now believe the trade war will be a protracted affair. Jack Ma Yun, the chairman of Alibaba Group Holding, which owns the South China Morning Post, said the dispute could last 20 years.

Some people in China believe Trump may not want a deal on trade at all, as he wants to play the China card to energise and solidify his electoral base in the run-up to the US midterm elections in November and his presidential re-election campaign in 2020.

Trump is increasingly seen in China as a bogeyman who uses trade as weapon to undermine the country’s authoritarian regime and contain its rise.

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Is he indeed? Let me go against the grain by arguing that the Trump presidency could in fact prove a blessing in disguise for Chinese leaders, as they are deliberating on effective ways to move forward with the economy at a time of great uncertainty – partly fuelled by his trade war.

Over the past few months, Chinese state media have started to portray Trump and the trade hawks in his administration as harbouring ulterior motives to use trade and investment restrictions as excuses to stymie China’s progress and derail its efforts to become a world power capable of challenging the global supremacy of the US.

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There is a belief Trump wants to play the China card to energise and solidify his electoral base. Photo: AFP
There is a belief Trump wants to play the China card to energise and solidify his electoral base. Photo: AFP
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