This week, Trump will officially begin his second term with an inauguration ceremony, returning to the White House with an ambitious agenda to counter China's influence. Trump, who has consistently positioned himself as a critic of China's economic policies, intends to adopt decisive strategies to contain the country. His primary focus seems to be reducing the dependence of the US economy and its allies on Chinese supply chains, an issue that was initiated during his first term and is now back on his agenda.
China's dominance in global supply chains
Over the past two decades, China has gained significant control over global supply chains through extensive government support for key industries. Rare minerals like graphite and germanium, essential for modern technology and electric car batteries, are largely under China's monopoly. The country also holds a significant share of the global market by providing heavy subsidies to domestic producers.
Trump's actions to reduce dependence on China
During his first term, Trump took initial steps to counter China's influence by imposing heavy tariffs on Chinese goods and encouraging American companies to shift production from China to other countries. Now, he plans to adopt a broader approach, including signing trade agreements with allies, to limit Beijing's influence. These agreements could steer other countries towards alternative sourcing and reduce their reliance on Chinese supply chains.
Challenges for the US
Despite past efforts, the US still faces significant challenges in leveraging its economic relationships to compete with China. One obstacle is the lack of multilateral trade agreements. While China has increased its influence through new trade deals and domestic production support, the US has struggled to effectively engage its allies in the project of reducing dependence on China.
Future strategies: Trade agreements and supply chain diversification
One of the key steps for Trump is to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). This pact could be a significant tool to strengthen America's trade position. However, if China joins the agreement before the US, Washington's position will be weakened. In addition, investing in critical mineral suppliers and new technologies will be part of Trump's future plans to counter China's dominance in global supply chains.
Trump aims to curb China's global influence by continuing the initiatives he started in his first term. His agenda is likely to include pursuing new trade agreements, strengthening economic cooperation with allies, and investing in key industries.
In his second term, Trump will not only continue the tariff war with China but also attempt to reduce the global economy's reliance on China by forming global alliances and diversifying the supply chain.
NOURNEWS