[DrVenture]

From Weekly Business Digest Feb 3.

"OTHER VOICES. William PESEK, Japan-based Asian Affairs Writer and formerly at Barron’s. While events in DC are moving very fast, CHINA has been calmly talking about mutual cooperation and respect. President TRUMP has also toned down his election rhetoric on China tariffs. The experiences by Canada, Mexico, Columbia, Brazil have been different. But Trump administration has several China hawks (Rubio, Waltz, Hegseth, Ratcliffe, Navarro, Lighthizer) and it won’t be a smooth sailing for China. Musk wants Chinese access for X/Twitter in exchange for rescuing TikTok in the US, but that’s unlikely.

Chinese President XI is a tough negotiator, and he knows that Trumponomics 2.0 isn’t good for China or Asia. Some say that AI – DeepSeek was a high-profile Chinese response to the US $500-billion AI – Stargate announcement. China had a bad 2024 and its property crisis isn’t over. But Xi is unlikely to prematurely capitulate just from some loud talk. It has also launched investigations into what it called abusive practices of several US and European companies. China has been reducing its holdings of the US Treasuries. Fasten your seatbelt as Xi may force Trump to deliver on his campaign pledge on 60% China tariffs and the global chaos and shock that may follow.