How China might react to US election results - expert explains hidden plans

China prepares different strategies for upcoming US leadership change in Jan-2025. While Harris win could mean business-as-usual Beijing has unique counter-plans ready if Trump returns to office

October 31 2024 , 04:15 PM  •  574 views

How China might react to US election results - expert explains hidden plans

Beijing shows no open preference for the next US leader but its got different play-books ready for Jan-2025. While Kamala Harris might follow current tech-focused policies Donald Trump threatens major economic shake-ups

The Biden-Harris way means careful tech-control and friend-making around the world (which China accepts while building its own tech base). However Chinese officials dont worry much about this path: they just keep working on self-development and building ties with developing nations

The Trump scenario looks way different than before. His team talks about huge tariffs - maybe 60% or higher on Chinese goods. Last time in early-2018 China played nice but now its ready to hit back hard; market experts seem to miss this point

  • Target big US companies that have Chinese competitors
  • Cut rare-materials exports
  • Sell hundred-billion worth of US bonds
  • Make more moves near Taiwan
  • Drop yuan value from 7.1 to maybe 10-12 per dollar

We shouldnt underestimate Beijings willingness to take economic hits for strategic gains

Expert analysis shows

Chinese leaders think drastic steps might be needed - they believe some US allies would understand their position. Xi Jinping might skip the nice-talk approach this time: instead of sending negotiators like before he could ok quick counter-hits

Smart US policy should focus on precise economic moves not all-out trade war. Building tech partnerships working with allies and using targeted controls would work better than starting an economic street-fight that nobody can win