The global trade war continues to be replete with tension, courtesy of former U.S. President Donald Trump, who took a verbal swipe at China using his characteristic incendiary language. While making a recent statement, Trump asserted, *”China played it wrong, they panicked — the one thing they cannot afford to do!”* His comment comes when economic relations between the two super-economies continue to be volatile, with tariffs, sanctions, and retaliatory actions creating unprecedented global economic insecurity.
Trump, who took a hardline China stance while president, still portrays himself as a tough voice on trade. His remarks indicate that China’s recent economic moves express fear and miscalculation. Experts believe this verbal taunt might be part of a larger strategy to stay politically relevant and force President Joe Biden’s administration to have a tougher trade policy.
China, meanwhile, has been restrained in its reaction, with official media highlighting economic stability and urging restraint. Behind the scenes, though, the Chinese government is said to be pursuing new trade agreements and domestic economic reforms to soften the blow from possible future tariffs and political uncertainty due to U.S. elections.
As world markets watched, Trump’s words have again brought the sensitive balance of U.S.-China relations into focus. As the narrative of the trade war continues to shift, companies and governments across the globe are preparing for the possible ripple effects of a return to hostilities between the world’s two largest economies.
