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Midterms Shape China Ties
The defeat of Donald Trump’s camp and the Democrats’ control of both houses of Congress could weaken his ability to use tariffs in negotiations with China. Congress may also become less inclined to take steps that escalate pressure on Beijing if they raise costs for Americans or increase the risk of conflict. Democrats may push to resume arms sales to Taiwan, which is awaiting a deal worth $14 billion, but Trump can veto such measures or disregard congressional moves. Despite Trump’s reduced room for maneuver, analysts expect direct communications between him and Xi Jinping to continue, as Beijing seeks to manage the relationship cautiously and make use of the constraints on the president without provoking an ill-considered response.
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