China and Trump discuss prospects for US-China collaboration amid tensions

China’s top diplomat, Foreign Minister Wang Yi, expressed hope on Tuesday that the incoming Trump administration would "make the right choice" and work with China in a mutually beneficial manner, addressing disruptions and overcoming obstacles.

This statement came hours after President-elect Donald Trump discussed his strained relationship with Chinese President Xi Jinping, referring to the COVID-19 pandemic as a key factor.

“We hope the new U.S. administration will make the right choice and work with China in a mutually beneficial manner to remove disruptions and overcome obstacles,” Wang Yi said during a forum in Beijing. The remarks were a response to Trump's comments made earlier during his first news conference since his election victory six weeks ago.

Trump had referred to Xi as a "friend" but noted that the relationship had become strained due to the pandemic.

“We had a very good relationship until COVID,” Trump said, adding, "COVID didn't end the relationship, but it was a bridge too far for me." Trump’s comments were made during a press conference at his Mar-a-Lago estate in Florida, where he was asked whether Xi would attend his inauguration. He emphasized that while their relationship had soured, he still considered Xi a friend.

Following Joe Biden’s inauguration in January 2021, China expressed its willingness to cooperate with the new U.S. administration. However, it also imposed sanctions on former Secretary of State Mike Pompeo and 27 other top officials from the Trump administration, who had been involved in key policies towards China.

Ahead of Trump’s return to the White House, both the U.S. and China have been setting out their positions. Trump’s first term resulted in a trade war with China, which disrupted global supply chains, raised inflation, and increased borrowing costs.

He has indicated that his policy toward China will continue with renewed efforts, including a pledge to impose an additional 10% tariff on Chinese goods to pressure China to curb fentanyl trafficking into the U.S.

Trump has also signaled intentions to end China’s most-favored-nation trading status and impose tariffs exceeding 60% on Chinese imports, much higher than the tariffs implemented during his first term. In response, China is reportedly looking to amass bargaining chips to engage in talks with the U.S. on contentious issues such as trade, investment, and technology.

Trump has nominated several China hawks for key diplomatic and economic roles, which may indicate a more confrontational approach towards China than during his first term.

Republican Senator Marco Rubio, whom Trump has chosen to be the next secretary of state, is among those nominated, despite being under sanctions from China, which were imposed in 2020.

In response to the U.S. stance, Wang Yi reiterated China’s position, saying Beijing "firmly opposes the illegal and unreasonable suppression of China by the U.S." He specifically cited U.S. interference in China’s internal affairs, particularly with regard to Taiwan, as an area where China must respond firmly.

Despite the growing tensions, both nations appear to recognize the need for cooperation on global issues, with Trump noting, "China and the United States can together solve all of the problems of the world." However, with both sides gearing up for potential conflict over various issues, it remains unclear how relations will unfold under the next U.S. administration.