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Trump’s Trade War vs. Economic Reality: U.S.-China Ties Remain Vital

Despite ongoing tensions, the U.S. and China remain deeply economically intertwined.

Rashi Randev by Rashi Randev
June 30, 2025
in Geopolitics
Trump and China Trade Wars (Picture Credit: Bhaskar English)

Trump and China Trade Wars

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The US and China are locked in a fierce rivalry, each aiming to shape a unipolar world in its favor. While the US tries to maintain its global dominance, China is rapidly expanding its influence. For Trump, China is both a top competitor and a vital economic partner—driving his tough, deal-focused approach to keep the US ahead in this race for global leadership.

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In a Fox News interview on June 29, President Donald Trump brushed aside mounting concerns over China’s increasingly aggressive behavior, including the recent arrest of two Chinese nationals charged with smuggling a dangerous crop fungus into the United States.

When pressed about a litany of alleged misconduct—from cyber espionage to intellectual property theft, Trump offered a startlingly casual response: “That’s the way the world works. It’s a nasty world.” He even suggested that the U.S. engages in similar tactics, remarking, “You don’t think we do that to them? We do, we do a lot of things.”

His comments come amid federal charges against Yunqing Jian and Zunyong Liu for attempting to import Fusarium graminearum, a highly destructive pathogen that can cripple U.S. agriculture. Rather than sounding the alarm, Trump appeared dismissive, casting doubt on whether the act was orchestrated by the Chinese state or simply, as he put it, “three wackos.”

Still, he struck an optimistic tone on U.S.-China relations, insisting the situation is “manageable” and arguing that continued trade negotiations and tariffs prove that “getting along with China is a very good thing.”

Diplomatic Calculus and Negotiation Tactics

Trump’s public posture appears to be a calculated diplomatic strategy that emphasizes positive relations to keep dialogue open on critical issues like trade, technology, and regional security. By downplaying confrontation and openly acknowledging that the US also engages in covert tactics and espionage, Trump signals to Beijing a willingness to compete pragmatically rather than escalate tensions.

This approach not only serves as a negotiating tactic, potentially encouraging cooperation or concessions but also reflects a broader shift in international relations, where great power competition and behind-the-scenes maneuvering are treated as normal, stripping away the traditional veneer of moral exceptionalism in American foreign policy.

Also Read: US Warns China at Shangri-La Dialogue: “We’re Ready to Fight and Win”

Economic Interdependence

Despite ongoing tensions, the US and China remain deeply economically intertwined. Trump has repeatedly highlighted the importance of trade and investment ties, and his administration may be seeking to stabilize markets and reassure US businesses that the relationship is manageable. Downplaying conflict can help prevent economic fallout, especially during periods of global uncertainty.

Trump’s “getting along well” rhetoric and focus on trade deals reflect a transactional approach that Beijing both welcomes and warily scrutinizes. The latest developments, including a new trade “framework” and mutual tariff easing, suggest both sides are seeking short-term stability amid ongoing rivalry. China, facing a 55% US tariff on its goods, is eager to keep economic channels open—especially for rare earth exports critical to US industries.

At the same time, Beijing remains cautious: Trump’s unpredictability and willingness to escalate tariffs or restrict technology access keep Chinese leaders on alert for sudden policy shifts.

Strategically, China sees Trump’s downplaying of espionage and covert actions as tacit acceptance of great power competition. While this may lower the temperature in public rhetoric, it also normalizes hardball tactics behind the scenes. Beijing will continue to push for respect on issues like Taiwan and technological sovereignty, while leveraging its economic clout in negotiations.

Trumps’ Great Power Play

Trump’s normalization of great power rivalry and covert tactics aligns with Russia’s own playbook, where espionage and economic leverage are standard tools of statecraft. Moscow will likely continue to position itself as a key broker in global crises, offering support to Iran and China when it serves its interests, while also probing for opportunities to undermine US influence in Europe, the Middle East, and beyond.

But by equating US actions with those of China, Trump blurs the distinction between legitimate national security measures and illegal or unethical conduct. This not only undermines the credibility of American diplomatic protests and legal actions but also risks normalizing dangerous behavior on both sides.

As covert operations, cyberattacks, and economic sabotage become accepted as standard practice, the threshold for what constitutes an “act of war” or crisis may rise—potentially allowing more severe incidents to occur before prompting a diplomatic or military response.

However, Trump’s remarks reflect a shift toward open acknowledgment of great power competition as a “nasty” but normal part of global affairs. His downplaying concerns over aggressive Chinese actions, while touting positive trade progress signal a shift toward pragmatic, transactional diplomacy in US foreign policy. This approach is reshaping not only the US-China dynamic but also the strategic calculations of key global players like Iran and Russia.

Tags: Chinese AggressionDonald TrumpUS-China trade war
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Rashi Randev

Rashi Randev

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