Trump faces backlash from China hawks as he pushes trade deal

When Donald Trump first became U.S. president, he reshaped Washington’s approach to China, taking a confrontational stance, launching a trade war, and overturning years of established policy. Now, in his second term, some Washington officials who advocate a hard line on China are concerned that Trump may be softening. As Trump seeks to establish a significant trade deal with the country’s largest economic rival, those pushing for a tougher stance worry that they are being pushed aside. This occurs when the tech industry becomes more influential, and Trump demonstrates a heightened interest in what he calls “a big deal.” Economic experts raise concerns about Trump’s efforts to strike a trade deal with China Concerns about Trump easing up on China have intensified following an announcement of an upcoming meeting between the U.S. president and Xi Jinping, the President of the People’s Republic of China. Ahead of the talks, China outlined several demands expected to alter the US’s long-standing policies. This includes easing investment regulations to boost investments and reducing U.S. support for Taiwan. Additionally, Trump demonstrated his willingness to disregard concerns raised by China hawks, such as maintaining deals to keep TikTok’s video-sharing app operational and permitting Nvidia Corp. to sell some of its AI chips to the country. The U.S. president also fired several advisers from the National Security Council who backed a tougher approach toward China. Consequently, this has weakened the council’s role. The situation has worried security and tech experts because it seems like no one is left to challenge those advocating for stronger business ties with Beijing. According to some economic experts, the situation surrounding China-U.S. business ties is serious due to the strong economic connections between the two countries and China’s potential in sectors such as AI, chips, and cybersecurity. Huang’s remark against China hawks faces criticism from individuals Trump cited national security as the basis for imposing tariffs on a range of products, including aluminum and steel, as well as kitchen cabinets. However, during his first term, he also demonstrated a pattern of halting efforts to curb sales to China. He criticized his advisers for employing a fake concept of national security. The tensions were revealed last week when Jensen Huang, the chairman of Nvidia, criticized hard-liners against China during a podcast interview. A powerful informal adviser to Trump on issues of technology and China policy, Huang blasted them as hard-liners who wear a “badge of shame” and are not patriotic. Seeing how individuals raised concerns about his remarks, Huang’s defenders argued that his remarks were misinterpreted. This prompted strong criticism from people like former Trump adviser Steve Bannon, who called for Huang to be arrested, saying he is an agent of influence for the Chinese Communist Party (CCP). Moreover, tech investor Joe Lonsdale, a Trump supporter, proudly pointed out that he is a China hawk, describing the CCP as an evil and violent authoritarian regime. Still, Huang and David Sacks, a tech investor and podcaster who serves as Trump’s advisor on AI and crypto, believe that the hawks are wrong. They say it is good for America if China becomes dependent on American technology. According to them, this strategy will hinder Chinese companies from gaining sufficient power and market share to overpower American businesses elsewhere. Join Bybit now and claim a $50 bonus in minutes