Beijing may not be happy with Trump but it stands to lose $1 trillion and many other reasons that will not be favorable to China, if Trump will not win the presidential elections.
But the CCP and Xi are used to the disorder that Trump has done to realize their ambitions. They have been the recipient of a shellacking that only Trump can do, and they don't know if they want him or not. The U.S. President has been busy causing realignments in the status quo than any U.S. President has done. To date, some of the organizations that have been subject to his particular style are the World Health Organization and the International Monetary Fund, which leaves an opportunity for Beijing to step in, report Forbes.
But China has $1 trillion to hope for a Biden win in the November elections. For one that is the exact amount in which Beijing is at risk. Trump has alternatives to give the CCP something to consider, that is the reserve currency at risk. Put it another way, then you've got an amount of $3.5 trillion that includes shareholders from Asia that are holders of U.S. Treasury securities.
What caused the US dollar to drop at an excess of 3% in 2020 are the Federal Reserve policies and American debt that is going over $25 Trillion. Another is a negative perception of how well his administration is handling the economic situation, which is getting less than desired results.
Recent events have helped the situation get out of hand in 2020. One is the handling of the COVID-19 problem that is not getting any better with states like Florida getting more cases than ever. Another is the failure to flatten the curve and premature state openings. Trump is considering weakening the dollar to have more trade benefits. Everyone is on the knife's edge that he will do just that to get more exports, which is not okay with those in currency trading.
During his 2016 campaign, he said that he was willing to take unorthodox methods to get ahead, even with risks. Now, it does not sit well with many during the Pandemic.
There are many threats to weaken the dollar for trade advantage. Others fear that he might do just that at any moment to juice exports have currency traders on perpetual edge.
The Trump administration has a trade war with China, and there's a tech war with Huawei that is just the start. Even the TikTok app will not be spared, another is banning members of the CCP to enter the U.S. as well.
There are also fears that capital markets will be affected negatively as another Trump effect. So many risks may happen not only for China but the U.S. as well.
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