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Superpower showdown: how US-China economic warfare could play out under Trump

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After retaking the White House last month, US president-elect Donald Trump celebrated his victory by attending an Ultimate Fighting Championship heavyweight bout with his friend and UFC president, Dana White, alongside billionaire ally Elon Musk.

Days later, Trump, the well-known fan of mixed martial arts, started to announce his pick of a group of diehard supporters for his “America first” agenda who are expected to come out swinging at China – America’s most consequential geopolitical rival – in his second term.

From Howard Lutnick, a Wall Street executive who has been vocal about tariffs, to Peter Navarro, a hawkish economist sanctioned by Beijing, choices made by Trump for his economic team signal that competition and conflicts between the world’s two largest economies are set to intensify, according to analysts.

And some say that China, which has maintained a stable team of loyalists to President Xi Jinping and gained experience with Trump in his first term, may respond with more composure – as demonstrated in the ancient Chinese martial art of tai chi – while trying to dissolve attacks from the United States.

Vice-Premier He Lifeng, who has been the “Chinese lead in US economic and trade talks” since last year, is expected to play a pivotal role in dealing with what looks to be shaping up as a fresh round of trade contentions.

As for their stance on China, these individuals are generally tough and hawkish

Zhou Mi, Chinese Academy of International Trade and Economic Cooperation

Unlike when Trump first entered politics and had to rely on the opinions of establishment Republicans, his strong return has elevated loyalty to his primary criterion for selecting candidates, aiming to minimise any constraints on presidential power.

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