China Faces Major Threat from Potential Trump 2.0 Policies
Driven by NRI Vivek Ramaswamy and Elon Musk

Los Angeles/Nov 25, 2024
NRIpress.club/Ramesh/A.Gary Singh

China’s top policy expert has warned that a second term for Donald Trump as US president could pose significant challenges to China, particularly through government overhauls spearheaded by tech mogul Elon Musk and entrepreneur Vivek Ramaswamy. Zheng Yongnian, dean of the School of Public Policy at the Chinese University of Hong Kong’s Shenzhen campus, emphasized the need for China to counter these challenges by enhancing unilateral economic openness and reform.

Speaking at the Baichuan Forum hosted by the university’s Institute for International Affairs, Zheng stated that while Trump’s return might result in economic turbulence due to renewed tariffs and “America First” policies, it could also reduce direct geopolitical confrontation. However, he warned that the greatest long-term threat lies in domestic reforms within the US under Trump’s administration.

Zheng highlighted that Trump’s proposed system changes, led by figures like Musk, could evolve into a form of “state capitalism with American characteristics,” boosting US competitiveness and putting pressure on China’s governance model. Musk, appointed as Trump’s “efficiency tsar,” and Ramaswamy have proposed sweeping reforms, including drastic reductions in government spending, regulations, and workforce.

Such measures, Zheng argued, could create ripple effects that would challenge China’s economic and political systems, as well as Europe’s.

To prepare, Zheng called for accelerated institutional reforms in China to bolster its domestic market and align with its dual circulation strategy, which aims to reduce reliance on Western economies while strengthening internal growth mechanisms.

The adviser also urged Beijing to expand unilateral opening measures to outpace the US in fostering global economic partnerships. This, Zheng believes, could counteract the potential formation of parallel trade systems led by the US.

“China must fully tap into its internal growth potential and act swiftly in the face of these changes,” Zheng said.

Zheng also noted that while Trump’s policies are likely to intensify tensions around the South China Sea and Taiwan Strait, he does not foresee an escalation to military conflict due to China’s growing defensive capabilities.

China, Zheng concluded, should focus on structural reforms and open-market strategies to stay competitive in an increasingly polarized global trade environment.

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