China Adapts To New Landscape Brought By Trump’s Trade War
Following the revival of trade talks between China and the U.S., analysts said it appears the former has learned to adapt to the new business landscape brought about by the painful trade war. Beijing's Plan B of adaptation may be working for its favor.
According to CNBC, the meeting between Chinese President Xi Jinping and his American counterpart Donald Trump indeed pushed global markets to better heights. However, trade relations between the world's two largest economies will never be the same and in what could be the most surprising move of all, China appears to be fine with it.
The trade war may have hurt China more, especially the tech sector, as Trump has been insisting over the past months. Contrary to the American leader's comments, U.S. chipmakers also complained of the impact of their president's trade war.
Before Xi and Trump agreed to revive trade talks at the G20 Summit in Japan last weekend, the White House, particularly it's chief, had been changing stances regarding its view of China and the Asian country's leading tech firm, Huawei.
While Beijing may have been shocked at first by Washington's attacks, it appears the Chinese government and even Chinese business circles have started adapting to the massive changes in its trade relations with the U.S.
Industry analysts in the tech sector said adapting to the new tech landscape means there may be "two tech worlds" in the long run as Washington continues to flip-flop on its trade stance with China.
"But there is the possibility that we will really have two tech worlds, a Chinese one and a U.S. one, hopefully, it will not come to that but it's not impossible," chairman of the Boston Consulting Group, Hans-Paul Burkner, pointed out.
Burkner's predictions of China making its own tech world may have started at the G20 Summit. Analysts said despite Trump's statements about the U.S. always having the upper hand, it appears China won big this time.
In the Xi-Trump meeting at G20, Trump agreed to ease up on Huawei while China said it will continue purchasing more U.S. agricultural produce. Experts said while Beijing was clear with what it would do for Washington and its people, the White House didn't give out details about "what they gave up in order to get it."
The trade war truce is expected to continue for months before any decision is met by Beijing and Washington. Still, many analysts believe China is more prepared and more resilient now than ever, and it is adapting to the changes to develop a world where White House attacks on the Chinese market backfire.