Experts say Musk will be the biggest challenge facing China

Zheng Yongnian, Dean of the School of Public Policy at the Chinese University of Hong Kong (Shenzhen) and Dean of the Qianhai Institute of International Affairs, stated at a forum on the 23rd that during Trump's second presidential term, the US government reform driven by tech billionaire Elon Musk will become the biggest challenge facing China. He pointed out that as a response measure, China should expand its "unilateral opening-up" measures towards countries including the United States, and "who is more open than whom" is the core of the competition between China and the United States.

The Baichuan Forum, hosted by the Qianhai Institute of International Affairs at The Chinese University of Hong Kong (Shenzhen), opened in Shenzhen on the 23rd. Zheng Yongnian stated in his speech that after Trump returns to the White House, China's economy and trade may face a "significant impact" in the short term, but geopolitical pressures may ease.

He said that Trump may harm bilateral relations through tariffs, but "he doesn't actually want to go to war with China.

In Zheng Yongnian's view, Trump's use of the "tariff stick" against China under his "America First" policy will not only "maximize" the damage to bilateral relations, but also undermine the international trade system. However, geopolitics is more like a "tool" for Trump, although he expects to continue exacerbating tensions around the South China Sea and Taiwan Strait, "he actually does not want to go to war with China", and China's rapidly growing defense capabilities also enable it to better manage related geopolitical risks.

In the medium to long term, the biggest pressure facing China may come from changes within the United States, "said Zheng Yongnian. If Trump successfully reforms the government, the United States will" nurture a new and more competitive system, "known as" national capitalism with American characteristics. This will pose unprecedented challenges to China.

I personally believe that we should not underestimate the institutional reforms led by figures like Musk, "he said.

Trump announced this month the establishment of a new Department of Government Efficiency (DOGE), which will be jointly led by Musk and Indian American entrepreneur Ramaswami, tasked with cutting government spending and streamlining bureaucracy. Trump referred to it as "possibly the Manhattan Project of our time.

On the 20th, Musk and Ramaswami published an article in The Wall Street Journal titled 'Reform Hard Leader', proposing to cut multiple unreasonable federal regulations and initiate large-scale layoffs.

A more effective American political system will bring tremendous pressure to China, "Zheng Yongnian said." Of course, the pressure is not limited to China, but also includes other countries, especially Europe

He suggested that in order to cope with global environmental changes, 'we must fully tap into the potential for internal growth'.

Zheng Yongnian hopes that China will accelerate its institutional reform and support the domestic market under the "dual circulation" strategy. He further stated that China should accelerate its pace of opening up, especially by promoting a "unilateral opening" strategy, in response to the United States' attempt to establish a parallel trading system independent of China.

While not underestimating the destructive power of the Trump administration on the world trade system, let alone underestimating the ability of China's open policy to reshape the global trade system, "Zheng Yongnian emphasized." History has proven that ultimately the more open side will win the competition.

To further facilitate the exchange of personnel between China and foreign countries, China announced on the 22nd that it has decided to expand the scope of visa free countries to include nine countries including Estonia, Latvia, and Japan.

Zheng Yongnian called for the inclusion of American capital and citizens in the "unilateral opening-up" policy. He said that through this approach, the hardliners, Cold War supporters, and anti China factions in the United States will be truly isolated.

Although competition between China and the United States is inevitable, we need not be too afraid. However, we must realize that the core of competition is who is more open than whom

The ultimate winner will undoubtedly be the more open side, "Zheng Yongnian said." I believe we will definitely surpass the United States