China in Trump’s shop

By Jayasri Priyalal

Populism is a political approach that seeks to appeal to ordinary people who feel their concerns are disregarded by established elite groups, often creating an “us vs. them” mentality that divides society. During his first term, President Trump blamed various groups and factors, such as immigrants and unfair trade practices in China, where state subsidies distort markets, leading to cheap goods flooding American markets and impacting jobs and industries. President Trump was highly critical of the inefficiencies within US government institutions. He is determined to implement his economic strategy, known as MAGAnomics, to address these issues.

American exceptionalism was the mantra during President Donald Trump’s first term. Smaller governments for increased efficiency remain a myth as capital markets are heavily dependent on near zero interest funds. They do not come from private conglomerates as earned profits, but from the state-run financial agencies.

Mr. Donald Trump was elected as the 47th President of the United States of America, with “Make America Great Again” as his dominant campaign theme. He rose to political prominence as a populist, advocating for nationalist interests among Americans. Since taking office on January 20th, President Trump has issued numerous executive orders. Some of these decisions have been legally challenged at the time of writing this essay. The President’s office has been issuing executive orders at a rapid pace, possibly as an effort to “drain the swamp,” a promise he made during his first term.

Ruchir Sharma writes that the era of small government ended long ago, as the global financial assets are loaded with debt instruments and the real capital and stocks are only 30 percent of the financial assets. In his book What went Wrong with Capitalism, Ruchir Sharma forewarns about fake prosperity of giant corporations dominating the economy in a debt-pickled business culture. When stock market values of largest corporations cross US$ 3 trillion and fortunes of richest tycoons break US$ 200 billion, a bigger government must be the answer to balance the unrestrained financialisation, argues Sharma candidly. It will be too early to comment whether a strategic regulatory and state capture is underway in the hands of the super-rich in the second term of President Donald Trump.

The failed neo-liberal ideology built on the premise of privatisation of profits and socialisation social problems culture appears to be gaining ground in the name of efficiency once again. President Trump has set up a new agency -Department of Government Efficiency (DOGE) to increase efficiency and appointed billionaire, Elon Musk to head the agency. Wonder whether they have plans to close the Federal Reserve for minting money at neo-zero interest rates, and reduce the size of the government?

One significant action was the closure of USAID, which sent shockwaves through development agencies that relied on its funds to address the needs of the poor and marginalised. In the process, the Department of Government Efficiency (DOGE) and the Trump administration have uncovered many illicit operations within USAID, revealing hidden agendas. Media reports suggest there is evidence of USAID’s involvement in supporting the demonstrators of the Orange Revolution in Ukraine in 2004.

“History doesn’t repeat itself,

but it does rhymes” – Mark Twain

This write-up aims to analyse the historical trends of great leaders who have influenced human civilisation and how they demonstrated their leadership through either fear or courage. Fear and courage were the two key determinants that drove those leading and mobilising the masses for struggles for the common good. However, history reveals how leaders chose just and unjust causes to lead for better or worse.

The writer opines that the current extreme right-wing populist political trend seeks to reverse many of the progressive achievements’ humankind has secured. Far-right political movements are rallying with populist movements like those that existed in the pre-WWI era. Globalisation-driven neoliberal policies have widened inequalities across all social segments, benefiting only a handful of the super-rich at the expense of the larger portion of have-nots.

It appears that current frustrations are being capitalised on by the far-right populist movement to gain electoral success by dividing public opinion and sparking fear. This fear includes losing jobs and livelihoods to migrants from other countries and Americans losing their economic superiority to China. China’s technological achievements in AI and electric vehicle manufacturing, along with new geopolitical alliances outside the sphere of influence of northern hemisphere-controlled states, are casting doubts among electorates in Western democracies.

The antidote to fear is hope, which is being strategically utilised by far-right political movements in Europe, North America, and South America now. Therefore, populists are getting elected to govern the helpless and hopeless. Democracy is ineffective if the prevailing economy does not benefit most of the society. History demonstrates how the Weimar Republic in Germany collapsed in 1933, paving the way for World War II and bringing misery and hardship to mankind with the democratically elected Adolf Hitler coming to power.

Hitler and the Nazi regime unleashed an extreme right-wing doctrine, leading to the Holocaust, driven by the fear that Jews and migrants threatened the supremacy of the Aryan German race—a fundamentally misconceived belief. By embedding fear among the German population, the Nazi forces were able to act with a distorted sense of courage, driven by their misguided mission to make Germany great in Europe.

History reveals that the collapse of the Weimar Republic in Germany was due to economic problems, disdain for democracy, political polarisation, and international isolation. Are we witnessing any parallels in the 21st century? On February 23rd, 2025, Germans elected a new chancellor, and the far-right AfD gained the highest number of votes in history, securing the second-highest number of seats in the Bundestag, pushing the outgoing chancellor Olaf Scholz’s Social Democratic Party (SPD) into third place.

As Mark Twain famously asked, does history repeat itself or merely rhyme? In the current context, numerous economic policy uncertainties have left much of the population feeling helpless, hopeless, and frustrated. The neoliberal order that dominated for decades has widened inequalities not only in income and wealth but also in access to education and health services across communities.

Currently, it appears that the super-rich are stepping into state and regulatory capture, aligning with policymakers. Unelected Elon Musk now sits in President Donald Trump’s cabinet meetings. Will they team up to alleviate poverty and uplift the quality of life for marginalised people?

The Only Thing We Have to Fear is Fear Itself” – Franklin D. Roosevelt

President Franklin D. Roosevelt (FDR) led the US administration during the crisis of the 1930s. His New Deal policy package, which stimulated the sagging economy with increased government expenditure and saved jobs, ultimately turned the situation around. FDR defined courage as not the absence of fear, but rather the assessment that something else is more important than fear.

The emerging economic powerhouse, China, and its administrative system, the Communist Party of China, face geopolitical and economic challenges. Are they influenced by fear or courage in their response? President Donald Trump and his administration have challenged many of their trading partners by imposing conditions on trade and technological advancements. Is China responding to these tactics—such as increased taxes, economic sanctions, or manoeuvres regarding sovereign rights in Taiwan and Tibet—with fear or courage?

Throughout history, emperors, military dictators, and malevolent political leaders have demonstrated ruthless leadership based on false beliefs catalysed by fear, leading to devastating wars and human suffering. Among them are democratically elected leaders who soon transformed into ruthless dictators, such as Adolf Hitler in Germany, leading to World War II and the destruction of millions of innocent lives with immense suffering and bloodshed.

When analysing historical trends, a clear pattern emerges. In the 15th century, religious wars were fought under the false belief of spiritual superiority. From the 16th to the 18th century, imperialistic wars were driven by the perceived dominance of European civilisation and the spread of faith. Subsequent conflicts, including World War I, World War II, and the Cold War in the 19th and 20th centuries, were triggered by the monopolisation of natural resources, particularly energy, through colonisation.

The dominant ideologies that led to many human catastrophes during these wars were based on false beliefs, driven by fear and greed for the perceived benefits of the then-dominant ideology, industrial capitalism. It would be insightful to know whether the leaders who led these wars acted out of fear or courage. However, no research is needed to prove that great leaders such as Mahatma Gandhi and Nelson Mandela acted with sheer courage and conviction. In contrast, Adolf Hitler’s leadership, fuelled by fear, led to mass ethnic cleansing in gas chambers, mobilising populism with an “us vs. them” mentality.

TikTok to Deepseek: China’s Courageous Technological Superiority

Now, the geopolitical battles revolve once again around trade wars. Are there dominant ideologies or false beliefs driving the uncertainties in the global economy as in the past? Has the monopolistic advantage derived through trade in services by the global north since the late 20th century come to an end? Can global communities still rely on the open market and free trade fundamentalism founded on a rules-based order?

It appears that China is now in Trump’s shop in America, and the rest of the world is making calculations about American and Chinese dreams for the greater good of humanity. It is wise to take stock, learning from history without leaving space for disastrous cyber or nuclear wars that could shatter the hope for shared prosperity for all.

According to the World Bank, 850 million people have been lifted out of abject poverty in China. By 1949, the People’s Republic of China (PRC) came into being, defeating all feudal and imperialist forces under the leadership of Chairman Mao Zedong. It appears that Chinese political leadership is working with courage and determination to transform the PRC into an economic powerhouse by 2049. Chinese ambitions and aspirations of achieving these goals cannot be deterred by mere threats of tariffs and sanctions, as they have countered all such measures fearlessly.

During his first term in office, President Trump targeted the Chinese telecommunications company Huawei, raising concerns about US national security. The global north rallied with the USA and kept Huawei out of bounds. President Joe Biden continued with the sanctions and then banned TikTok, citing security concerns once again. Furthermore, President Biden banned the export of advanced powerful chips to China by enacting the CHIPS Act. Amidst all these constraints, Deepseek has become a popular AI search engine, and President Donald Trump keeps dancing to TikTok videos despite a court order.

Wang Chuanfu, the founder of BYD, a Chinese electric vehicle maker, now dominates the markets, sending courageous signals to Elon Musk’s Tesla brand. President Deng Xiaoping, the father of China’s modernisation era, foresaw the advantage and superiority of China’s rare earth mineral deposits as early as the 1990s. China dominates rare earth minerals, controlling 87% of the global market. Naturally, this fear drives US presidents to search for rare earth and mineral deposits in Iceland and Ukraine.