Trade War with China Looms as Trump Returns to Presidency
Eurasia Group founder Ian Bremmer predicts a trade war with China this year. "Everyone around Trump...is leaning into 'we want to hit China — we want to decouple our economy from theirs,'" Bremmer says.
China's economic challenges and unwillingness to capitulate to new demands could trigger retaliation and escalate tensions.
Bremmer notes the complex situation regarding TikTok, banned in the US but granted a reprieve by Trump, underscoring the uncertainty surrounding Trump's actions.
The world is entering a "G-Zero" order, where no single power or group can maintain global order, Bremmer argues. He highlights the growing influence of billionaires, equating it to a "kleptocracy."
Key Points:
* US-China trade tensions expected to escalate into a trade war.
* Trump's policies, including tariffs, aim to decouple the US economy from China's.
* China's economic challenges hinder capitulation to new demands from the US.
* The TikTok ban and Trump's subsequent reprieve create legal uncertainties.
* The world is shifting towards a decentralized "G-Zero" order with limited global leadership.