Trumponomics How Trump’s Year of Disruption Has Only Helped China
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Feb 4, 2026 Dan Ten Kate, Bloomberg editor covering Asia and global economic policy, and Richard McGregor, Lowy Institute senior fellow with deep China experience, discuss how Trump's return reshaped global responses to Beijing. They explore allies hedging against U.S. reliability, Europe’s anti-coercion tool’s unintended uses, China’s export surge and tech-first self-reliance, and middle powers seeking alternatives to Washington.
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Trump's Unpredictability Boosts China's Reach
- Donald Trump's first year back has widened opportunities for Xi Jinping by increasing global willingness to work with China.
- Western leaders hedge against US unpredictability rather than confront China's export-led model.
Allies Question US Reliability
- Allies now question whether they can trust US commitments after erratic US diplomacy.
- That distrust is pushing Europe and middle powers to hedge, altering long-standing alignments.
Europe's Anti-Coercion Tool Faces Role Reversal
- Europe's anti-coercion tool, created to deter China, now risks being used against the US.
- That reversal highlights how measures designed for one rival can be repurposed when alliances shift.
