Li Cheng and Andy Browne discuss what Trump gets wrong about China and where next for ties
In this edition, two leading China watchers discuss the consequential relationship between the world's two largest economies and how ties might develop under the second Donald Trump administration amid growing trade frictions.
Professor Li Cheng, a leading political scientist who has studied China for decades, is the founding director of the University of Hong Kong's Centre on Contemporary China and the World. He previously spent 17 years at the Washington-based Brookings Institution, which included heading up the think tank's John L. Thornton China Centre.
Andrew Browne is an award-winning journalist who has covered China for The Wall Street Journal, Bloomberg, Reuters and the South China Morning Post. More recently, he was a partner at advisory firm The Brunswick Group, where he advised some of the world's largest companies on geopolitical strategy from his New York base.
The past few months have been a roller-coaster ride for US-China relations, beginning with President Donald Trump's 'Liberation Day' tariffs, followed by the tit-for-tat trade war and then trade negotiations.
What are your assessments of the health of bilateral ties and how do you see things unfolding?
Li: China certainly feels that the pressure is not just on China. Of course, China is a major trading partner of the US, but the US is not China's No 1 or No 2 trading partner and trade with the US is only 16 per cent of China's entire foreign trade – we should put that into perspective.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
South China Morning Post
an hour ago
- South China Morning Post
Shanghai SASAC meeting signals softer stance on stablecoins after Hong Kong legislation
Shanghai looks set to lead the charge on stablecoin deployment in China, as the country's biggest metropolis explores how the digital asset can solidify its status as a financial and global trade hub. City leaders would instruct the government-controlled digital service provider and a local financial institution to study the feasibility of launching stablecoins as a way of mitigating risks, according to two local officials familiar with the matter who spoke on condition of anonymity. State-owned entities like Guotai Haitong, owned by the local government and Shanghai Data Group, the city's key data infrastructure firm, would look into the feasibility of launching a trial run of stablecoins, according to the officials. A meeting last Thursday by the Shanghai State-owned Assets Supervision and Administration Commission (SASAC) had largely been interpreted as a further softening of China's stance on cryptocurrency. That came after central bank governor Pan Gongsheng flagged the significance of stablecoins in areas such as cross-border payments at a financial forum last month. At last week's meeting, Shanghai SASAC director He Qing said local regulators and state-owned company executives should be astute at finding opportunities arising from the latest technologies and strengthen research into digital currencies. The logo for the e-CNY, a digital version of the Chinese Yuan, seen during the China International Fair for Trade in Services in Beijing, September 5, 2021. Photo: AP He also called for more research into the application of blockchain technology to transborder trade, supply chain finance and asset digitalisation.
South China Morning Post
2 hours ago
- South China Morning Post
OpenAI delays its first open-source AI model challenging DeepSeek
Sam Altman , founder and CEO of ChatGPT owner OpenAI, said the release of its open-source artificial intelligence (AI) model would be delayed indefinitely, highlighting the challenges that the start-up faces in keeping pace with the open-source movement spearheaded by Chinese firms like DeepSeek Advertisement While OpenAI's closed-source AI models remain months ahead in their capabilities, Altman said on Saturday that its first open-source model may take more time to develop. 'We need time to run additional safety tests and review high-risk areas,' Altman wrote on his X account. 'We are not yet sure how long it will take us.' The announcement echoes a similar one from last month, when he postponed a planned early summer release of the product. The forthcoming model is distinct from previous releases like ChatGPT in that its source code and primary functions will be available for examination and modification by outside developers. It is an approach often adopted by companies seeking greater collaboration and more feedback on their products. Chinese companies such as DeepSeek have sparked a an open-source movement. Photo: AP Users have been eagerly awaiting the release of this open-source model, particularly as Chinese AI companies, including DeepSeek and Alibaba Group Holding, are driving an open-source movement that is gaining traction around the world, including in the US. Alibaba owns the South China Morning Post. Advertisement
South China Morning Post
2 hours ago
- South China Morning Post
How Trump's latest tariffs on allies and rivals could fund his ‘One Big Beautiful Bill'
As the ink on US President Donald Trump's signature ' One Big Beautiful Bill ' barely dried, he turned his focus back to tariffs, ending a three-month lull in global trade tensions. With the pause on April's 'reciprocal tariffs' expiring on July 9, Trump has announced new rates on 25 economies over the past week – including both neighbours and long-time allies. In this explainer, the Post wraps up the latest developments and explores what lies ahead. Which countries have received Trump's tariff letters? The European Union and Mexico are the latest . On Saturday, the US president threatened to impose 30 per cent duties on both. That followed earlier announcements of 35 per cent tariffs on Canada, 50 per cent on Brazil, 25 per cent on Japan and South Korea, and 20 per cent on the Philippines. He also unveiled tariffs for several developing economies, particularly Asian countries neighbouring China. The deadline for all negotiations is August 1. Taiwan, which faced a 32 per cent 'reciprocal tariff' in April, has not yet received a letter, while the island's officials have said talks are entering a 'crucial moment'.
