Second, there are indirect effects. As Chinese companies face more trade barriers from the US, they’ll need to work even harder on cutting costs and scaling up. A good example is what we saw in response to the chip embargo – many Chinese tech firms started open-sourcing their AI models. That’s a more cost-effective and collaborative way to keep developing advanced technologies when resources are tight. I expect we’ll see similar strategies in other areas like electric vehicles, batteries and renewable energy. These firms are going to keep pushing hard to make their products even more competitive.
At the same time, they’re not going to sit still. I think we’ll see Chinese companies look more aggressively to other markets – Asia, Latin America, Africa. And we’ll likely see more efforts to deepen trade with Europe, including offering technology transfers in exchange for market access.
Of course, there’s a lot of uncertainty ahead. But one thing is clear: Chinese firms are going to face serious challenges in the coming years under the Trump administration.
