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China's Approach to Trump 2.0

By Mr. Balasubramanian C, Senior Research Officer, CNSS

As President Trump enters a second term marked by aggressive tariffs and renewed U.S.-China tensions, Beijing is recalibrating its strategy using hard-earned lessons from Trump’s first presidency. China’s approach now emphasizes pragmatic resilience—prioritizing retaliation through economic levers like export controls and corporate pressure, while minimizing self-harm. With Xi Jinping’s strengthened political standing and a more self-reliant economy, Beijing is navigating a volatile global order by exploiting diplomatic openings, including outreach to India, and reinforcing ties with Southeast Asia.

However, the geopolitical landscape remains precarious. China’s economic vulnerabilities—slow recovery, weak investor confidence, and currency stress—coincide with Trump’s unpredictable policies. Key flashpoints like Taiwan and the global tech supply chain add complexity. The article underscores how the next four years could swing between conflict and cautious stabilization, as China balances strategic pushback with diplomatic overtures. For India, this evolving rivalry offers both risks and opportunities in shaping its trade, security, and diplomatic posture.