Trump on China: cooperation or confrontation?

Donald Trump’s America-first policies put trade squarely under the spotlight following his election victory. One of the biggest focus areas is China, and automotive is one of the sectors more vulnerable to change.

China is emerging as a global leader in electric vehicle (EV) and connected car technology, which already had the Biden Administration concerned. The current government imposed hefty tariffs on imported China-made EVs and proposed legislation to ban all advanced automotive connectivity systems from China and Russia—both deemed ‘countries of concern’. However, many US automotive companies rely heavily on China both to sell their finished products and source key materials and components in their manufacture.

China’s President Xi Jinping called Trump on 7 November to congratulate him on his election. According to a press release from China’s Ministry of Foreign Affairs, he emphasised how China and the US will both benefit from cooperation and lose from confrontation: