{"id":44,"date":"2026-05-12T23:07:38","date_gmt":"2026-05-12T23:07:38","guid":{"rendered":"https:\/\/movinginsiderusa.com\/?p=44"},"modified":"2026-05-12T23:07:38","modified_gmt":"2026-05-12T23:07:38","slug":"trumps-approach-on-china-has-changed-now-appears-focused-on-getting-along","status":"publish","type":"post","link":"https:\/\/movinginsiderusa.com\/?p=44","title":{"rendered":"Trump\u2019s approach on China has changed, now appears focused on getting along"},"content":{"rendered":"
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A container ship is shown at the Port of Long Beach in 2019. Trade and tariffs are expected to be major topics this week at the U.S.-China summit. (Mark Ralston\/AFP\/Getty Images)<\/figcaption>\n<\/figure>\n

Since President Donald Trump last visited Beijing more than eight years ago, U.S.-China merchandise trade has fallen by more than one-third. The partial commercial deal he signed with Chinese leaders failed to live up to advance billing. And the United States gave up trying to convince Beijing to remake its state-led economic model, choosing instead to ape some of China\u2019s <\/b>features.<\/p>

Read more \u2018Melania,\u2019 \u2018Rush Hour\u2019 director Brett Ratner is joining Trump\u2019s China trip<\/a><\/p>\n

After a bruising trade war consumed most of 2025, Trump and Chinese President Xi Jinping agreed last fall to an uneasy economic truce. The White House, struck by Xi\u2019s demonstrated willingness to push back hard on Trump\u2019s tariffs, now wants the relative calm to last.<\/p>\n

Whether it can will be decided at the two leaders\u2019 scheduled summit this week in the Chinese capital.<\/p>\n

Their discussions are expected to include the customary haggling over potential Chinese purchases of American products, including commercial jetliners and soybeans, as well as a proposal for a joint Board of Trade that would bring government oversight to their commerce. The two presidents are also likely to talk about ways to adjust tariffs that have grown to double-digit percentages on both sides.<\/p>\n

Whatever upbeat diplomatic rhetoric attends this week\u2019s ceremonies in Beijing, however, more friction appears inevitable.<\/p>\n

After struggling to decipher the unconventional American president in his first term, Chinese officials have learned to wield their economic leverage, warning U.S. business leaders recently that they will retaliate \u201ceach and every time\u201d Washington acts on trade or investment, according to an American executive who asked not to be named discussing confidential talks.<\/p>\n

The first Trump administration aimed to coerce China into reorienting its economic model to boost domestic consumption, which would suck in imports, while reducing subsidies for exporters. Today, the Trump team appears ready to settle for erecting higher barriers against Chinese goods.<\/p>\n

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Tiananmen Square in Beijing, ahead of this week’s summit. (Maxim Shemetov\/Reuters)<\/figcaption>\n<\/figure>\n

\u201cThe big change with Trump 2.0 is that China has really stopped trying to appease the administration. \u2026We\u2019re going to try to get some wins. But it\u2019s really about managed trade, and it\u2019s less about systemic change in the Chinese system,\u201d said Myron Brilliant, a senior counselor at the business advisory firm DGA-Albright Stonebridge Group who recently returned from discussions with Chinese officials in Beijing.<\/p>\n

The president has de-emphasized fundamental change in China\u2019s state-led economy at the same time he has pushed for greater involvement in the workings of the U.S. private sector. Under Trump, the federal government has taken an unusual ownership stake in Intel, a semiconductor maker, and several critical minerals companies. The government also secured a \u201cgolden share\u201d in Nippon Steel\u2019s takeover of US Steel, which allows the president to veto any plant closures or <\/b>headquarters relocation.<\/p>\n

Trump has steered the government into financial partnerships with Westinghouse, designed to promote deployment of its nuclear reactor technology, and traded government export licenses for a cut of the profits from sales to China of <\/b>Nvidia\u2019s and AMD\u2019s computer chips. Along with the president\u2019s demands that <\/b>U.S. trading partners, including Europe and Japan, invest hundreds of billions in U.S. projects as a condition of tariff deals, the new economic playbook represents a major shift in Washington\u2019s orientation.<\/p>\n

While falling well short of the government interventions that are common in China \u2014 and that multiple U.S. presidents have decried as unfair trade \u2014 Trump\u2019s economic activism marks a sharp departure<\/a> from the market-centric approach of his predecessors.<\/p>\n

\u201cThe entire conversation about fairness is disappearing because, one, not only do they think they wouldn\u2019t get the Chinese to budge on these issues, but even more so because the U.S. has decided that it will itself intervene heavily in the American economy,\u201d said Scott Kennedy, senior adviser at the Center for Strategic and International Studies in Washington.<\/p>\n

Trump entered the White House in 2017 having promised a break with decades of bipartisan support for integration between the world\u2019s two largest economies. He began imposing unprecedented tariffs on Chinese goods in 2018 and later took additional measures to hamstring China\u2019s technology development by placing two of the country\u2019s leading companies, Huawei and ZTE, on a Commerce Department blacklist.<\/p>\n

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An advertisement for Huawei. President Donald Trump began imposing unprecedented tariffs on Chinese goods in 2018. (Bloomberg\/Bloomberg via Getty Images)<\/figcaption>\n<\/figure>\n

Many of Trump\u2019s tariffs survived both the January 2020 signing of a \u201cphase one\u201d China trade deal and the Biden administration. U.S. imports from China peaked in 2018, then <\/b>fell for two years before rebounding amid the pandemic-era spending spree by housebound Americans.<\/p>\n

The pandemic also disrupted global supply chains, demonstrating the risks for Americans of depending upon Chinese factories for critical products including personal protective equipment, pharmaceuticals and rare earth minerals. Encouraged by both the Trump and Biden administrations, U.S. companies sought suppliers outside China.<\/p>\n

Within days of returning to the White House last year, Trump imposed additional tariffs on Chinese goods, first citing Beijing\u2019s role in the global fentanyl trade and later as part of his broader \u201cLiberation Day\u201d announcements affecting goods from most nations.<\/p>\n

Trump\u2019s strategy was premised on the idea that China needed the U.S. more than the U.S. needed it. When China, almost alone among major nations, retaliated against Trump\u2019s tariffs \u2013 by restricting shipments of the rare earths that U.S. automakers and healthcare giants require \u2013 the administration was caught off guard and quickly sued for peace.<\/p>\n

Earlier this month, China\u2019s willingness to defy the U.S. was again on display when the Ministry of Commerce for the first time ordered Chinese companies to ignore U.S. financial sanctions after the Treasury Department penalized several Chinese refiners for allegedly purchasing Iranian crude oil.<\/p>

Read more DOJ paid millions to FBI agents suspended for misconduct, Raskin says<\/a><\/p>\n

\u201cTo do it right before the summit with Trump, that\u2019s a clear warning shot to the U.S. that you\u2019re not going to be able to get away with this kind of thing. I think it probably also is an attempt to build leverage and give them something to hold over the U.S. in the talks,\u201d said Jake Werner, director of the East Asia program at the Quincy Institute, a Washington think tank that emphasizes diplomatic engagement and military restraint.<\/p>\n

In the days before the summit, White House officials suggested they are eager to maintain the delicate status quo rather than address the numerous irritants in the relationship.<\/p>\n

\u201cI think what both sides want is stability,\u201d a senior White House official said, referring to the one-year truce over rare earths exports that Trump and Xi reached at their October meeting in South Korea.<\/p>\n

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U.S. President Donald Trump and Chinese President Xi Jinping, shown in 2025, at the APEC summit, meet again this week. (Evelyn Hockstein\/Reuters)<\/figcaption>\n<\/figure>\n

The U.S. president now appears focused on getting along with Beijing. With the war in Iran<\/a> driving costs higher for U.S. consumers, Trump would face political risks from any additional economic disruption.<\/p>\n

\u201cDuring this visit, President Trump will continue doing what he has done over the past year, rebalancing the relationship with China and prioritizing reciprocity and fairness to restore American economic independence,\u201d said Anna Kelly, a White House spokeswoman.<\/p>\n

The overhaul of U.S.-China commerce that Trump set in motion nine years ago was aimed at reducing the bilateral trade deficit he blamed for hollowing out American factory communities. By that measure, it has been a success. The $375 billion U.S. trade deficit with China in 2017 shrank to $202 billion last year and is on pace to drop to $134 billion this year, which would be the lowest figure since 2003, according to Census Bureau statistics.<\/p>\n

Chinese goods, which accounted for nearly one-quarter of all U.S. imports before Trump\u2019s first trade war, made up just 7.5 percent of them in the first quarter of this year, according to economist Chad Bown<\/a> of the Peterson Institute for International Economics.<\/p>\n

But even as the deficit with China dropped, overall U.S. trade became even more imbalanced. The total U.S. trade deficit in 2017 of more than $792 billion grew to more than $1.2 trillion last year.<\/p>\n

The White House has credited the president\u2019s tariffs for the decline in Chinese imports, noting last month that China no longer had the largest trade surplus with the U.S. of any trading partner.<\/p>\n

But despite the economic conflict with the world\u2019s largest economy, China has continued to gain global manufacturing market share. The Chinese goods that once landed on U.S. shores now find customers in Southeast Asia or Europe.<\/p>\n

As China\u2019s domestic demand weakened amid a property bubble that collapsed in 2021, the government stepped up financial support for its manufacturers. By the beginning of this year, the volume of China\u2019s global exports was 70 percent larger than before the pandemic.<\/p>\n

Chinese-made lithium-ion batteries, railway equipment, ships, toys, automobiles and household appliances have flooded global markets at the expense of producers in advanced economies and the developing world, according to Capital Economics in London. In 2025, China\u2019s overall trade surplus hit $1.2 trillion, the largest ever by any nation.<\/p>\n

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An aerial view of new cars waiting for shipment from Shanghai to overseas markets. In 2025, China\u2019s overall trade surplus hit $1.2 trillion, the largest ever by any nation. (AP)<\/figcaption>\n<\/figure>\n

\u201cIt\u2019s just not sustainable for the rest of the world to absorb all of these exports because that will mean devastation in the manufacturing sectors of many countries that are on the receiving end,\u201d said Eswar Prasad, former head of the IMF\u2019s China unit and now a Cornell University professor.<\/p>\n

China\u2019s global export dominance is the mirror image of the chronic U.S. trade deficit. Such a lopsided global economy historically has raised the risk of weaker growth or even financial crisis, according to the International Monetary Fund<\/a>.<\/p>\n

\u201cThe world cannot take a China with a $1 trillion dollar trade surplus,\u201d Treasury Secretary Scott Bessent<\/a> said last month, calling global imbalances \u201cthe greatest risk\u201d to the world economy.<\/p>\n

Administration officials blame subsidized manufacturing for tilting global markets against U.S. companies and plan to respond later this summer with new tariffs. The U.S. Trade Representative last week held public hearings on policies used by China, as well as 14 other nations and the European Union, that result in \u201cstructural excess capacity\u201d in manufacturing.<\/p>\n

But Prasad, like most economists, said such measures are unlikely to deliver the global rebalancing that the administration seeks. That will occur only if both the U.S. and China change their domestic economic policies, with the U.S. saving more and consuming less, while China redirects its support from factories to households.<\/p>

Read more Why the Iran war is hurting the economy<\/a><\/p>\n

\u201cBut neither country seems willing to take those steps,\u201d he said.<\/p>\n

Rebecca Tan in Singapore contributed to this report.<\/i><\/p>","protected":false},"excerpt":{"rendered":"

In his first term, the president demanded fundamental shifts in China\u2019s economic model. 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