Donald Trump’s unexpected election victory sent shockwaves across the globe and hardest hit were major tech stocks which stumbled due to uncertainty. Throughout Trump’s election campaign he lambasted Chinese traders by accusing them of competing unfairly and suppressing their economy. Trump is looking at trade reforms to help protect US interests, this may impede Sino-US trade relations. He’s threatened to place heavy tariffs and extra costs especially on Chinese imports. Large US tech companies like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), IBM (NYSE:IBM), HP, Amazon (NASDAQ:AMZN) etc. experienced a big sell off since the election result.
US government reports show that trade between China and US has reached an estimated total of $660 billion. China is the United States 3rd largest export market, and the US is also China’s largest supplier. Trump states “it’s almost impossible to find any company in America- in the United States, large or small, that doesn’t have an important relationship with China. United States and China can achieve win-win results featuring mutual benefits.”
Chinese President Xi Jinping expressed his desire to work with Donald Trump and said that “there were many areas where China and the United States could cooperate”.
The love-hate relationship must continue; it’s evident that the two superpowers need each other to thrive economically.