Tensions in Washington are on the rise again. Eager to strike a “grand deal,” Donald Trump is engaging Beijing in an unexpectedly conciliatory manner, causing even the most hawkish policymakers to fear for their job security. The White House is increasingly prioritizing input from technology industry leaders, while voices advocating a tougher stance on China are becoming less influential in policymaking.
Trump appears to be playing the long game with China. He started by offering a reprieve to TikTok and quietly approving Nvidia’s sales of coveted AI chips to Chinese buyers. He also reshaped the National Security Council into a more corporate-friendly and less confrontational body. Analysts believe that the council may soon prioritize consensus over critical debate, with constructive scrutiny of US-China relations potentially giving way to a more restrained and less rigorous policy discussion.
Beijing has responded positively to recent developments, with China’s influence in the relationship appearing to grow. The US administration has made visible concessions, allowing TikTok to continue operations and permitting advanced chip exports to China. The shift in tone has been notably more conciliatory, prompting Nvidia CEO Jensen Huang to publicly criticize US policymakers who advocate for tougher restrictions, arguing that such an approach harms the business environment.
The backlash was swift. Former Trump advisor Steve Bannon called for Huang’s arrest on charges of being an “agent of Chinese influence,” a dramatic escalation more likely aimed at scoring political points in real time than addressing actual policy concerns.
Within the US tech sector, the prevailing view is that America should keep Chinese industry reliant on US technology, a form of strategic leverage that keeps China hooked on American innovation and prevents Beijing from amassing the expertise needed to overwhelm US markets with its own high-tech exports.
For its part, the White House maintains that Trump’s use of tariffs remains a key tool for pressuring China, while emphasizing a firm policy stance in negotiations with Xi Jinping that balances assertiveness with ongoing diplomatic engagement.
