China balances hope, caution as Trump returns to power

China is both hopeful and cautious as Donald Trump returns to the White House, with officials and citizens alike eager to avoid a repeat of the bruising trade war that severely strained US-China relations during his first term.

Ahead of Trump’s inauguration, Chinese Vice President Han Zheng met with Tesla CEO Elon Musk and other US business leaders in Washington, expressing hope that American companies would "take root" in China and help stabilize the bilateral relationship, Caliber.Az reports per foreign media.

Han's comments reflect China's desire for positive economic engagement as tensions with the US have taken a toll on both countries.

During his previous presidency, Trump imposed tariffs on more than $300 billion worth of Chinese imports, a measure that escalated the trade conflict between the two nations. Recently, he indicated plans to add at least 10 per cent more tariffs on Chinese goods, further complicating China’s efforts to recover from its economic struggles.

In a gesture of goodwill, Trump extended an invitation to Chinese President Xi Jinping to attend his inauguration, though Xi sent Vice President Han in his place, marking a more diplomatic gesture compared to the prior two US presidential inaugurations, where China was represented solely by its ambassador.

During a meeting with US business executives on January 19, Han welcomed Tesla and other American companies to contribute to China’s development and foster stronger ties between the two countries. The session, chaired by FedEx CEO Rajesh Subramaniam, included leaders from eight prominent US firms spanning sectors such as technology, banking, and logistics. An American executive in attendance described the meeting as cordial and extending beyond its scheduled time.

Michael Hart, president of the American Chamber of Commerce in China, emphasized Han’s understanding of foreign business concerns, particularly his experience in Shanghai, calling his approach “positive” and an encouraging sign for future engagements.

Meanwhile, a phone conversation between Trump and Xi on January 17 appeared to ease some tensions. Trump described the call as “very good,” while Xi expressed hope for a fresh, positive start to US-China relations. In the aftermath, both China and Hong Kong's stock markets saw gains. The CSI300 Index in mainland China rose by 0.9 per cent, while the Hang Seng Index in Hong Kong surged 2.3 per cent, marking its most significant increase in five weeks.

By Vafa Guliyeva