Jan 20, 2025 - Business

Trump's "softening tone toward China" seen in inaugural address and TikTok action

Nathan Bomey

Two people in black coats and glasses speak to each other below a huge painting — Han Zheng, China's vice president, left, arrives for Donald Trump's second presidential inauguration in the rotunda of the U.S. Capitol. Photo: Shawn Thew/EPA/Bloomberg via Getty Images

President Trump said little about China in his inauguration address Monday amid growing signs that he's becoming friendlier with the country he's long assailed.

Why it matters: Trump ignited a trade war with China during his first term and pledged to do the same thing again this time.

The big picture: Trump only mentioned China at one point in his speech — when he said that "China is operating the Panama Canal."

"And we didn't give it to China, we gave it to Panama. And we're taking it back," he added.

Between the lines: "There's definitely a softening tone toward China," Lu Zhou, CEO of investment firm Vanquor, tells Axios after watching the speech.

It looks like he "will take a more pragmatic economic approach towards China" this time around, she added.
Mark Malek, chief investment officer of Siebert.NXT, agreed that Trump appears to be moderating his stance toward China, which "of course Wall Street would love to see and the bond markets would love to see."

State of play: There have been some recent signals to support that view. For one, Trump won't immediately hike tariffs on Chinese products as some expected, and he reportedly plans to visit the country early in his term.

He is also set to issue an executive order delaying the enforcement of a U.S. ban on TikTok, which is owned by China's ByteDance. The move empowered TikTok to turn its service back on after a brief shut down, after which the app praised Trump for his efforts.
Meanwhile, Chinese state media noted that China's Vice President Han Zheng met with Trump confidant Elon Musk on Sunday. He attended Trump's swearing-in ceremony Monday.

And on Friday, Trump said he spoke with China President Xi Jinping about trade, TikTok and other subjects.

Reality check: Few experts are viewing recent developments as a full retreat from Trump's previous policy views, especially his plans for tariffs.

"Some of Trump's closest advisers would clearly like to limit the scope and size of those tariffs, but we suspect that Trump himself remains steadfast in his protectionist intentions and he will eventually win the internal debate," Capital Economics chief North America economist Paul Ashworth wrote today.
"I think he most likely will artfully implement certain tariffs on China to satisfy the American people, the base, and meanwhile not to upset certain" Chinese officials, Zhou tells Axios.

What we're watching: Trump's first-term trade playbook suggests that large-scale tariffs could also just take time to implement.

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Trump's "softening tone toward China" seen in inaugural address and TikTok action

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