MISCHIEVOUS propaganda against Pakistan’s ties with the US and China is irrelevant. Like China, American investors are eager to invest in Pakistan’s mining, energy and technology sectors. To boost its economy, Pakistan remains open to foreign investment. Despite the failure of the US-China trade deal in Trump’s first term, Xi allowed major American brands like Apple, Tesla and GE to operate in China, emphasizing Beijing’s welcoming stance on foreign investments.
Like China and the US, Pakistan needs strong policies, including corruption control, to protect and expand foreign investments. With DeepSeek’s $1T loss to the US economy, Xi holds leverage over Trump in US-China trade. The global economy is advancing without the US, as seen in restored China-India flights, the Latin America-EU Mercosur free-trade deal and European nations, including the UK, pursuing pragmatic economic ties with China.
The US and China are competitors, not enemies. In her book The New China Playbook: Beyond Socialism and Capitalism, LSE’s Prof. Jin highlights China’s separation of its economy from politics. China’s grassroots economic devolution links party promotions to GDP while maintaining state control over subsidies and SOEs, leaving Trump with no choice but to accept a fair, not favorable, trade deal.
China’s apolitical mayor economic model fosters grassroots economic growth without resorting to Trump-style authoritarianism or Europe’s far-right surge amid the cost-of-living crisis. Advances in solar panels, robotics, EVs and AI stem from this model at a fraction of Western AI’s projected $500B expenditure, as seen in DeepSeek’s $5M cost. To tackle job challenges, China is adopting Germany’s manufacturing model over the US’s, aiming to employ 100 million graduates. Its Made in China 2025 initiative provides a blueprint for global youth employment.
Trump must work with Xi to address capitalism’s cyclical boom-bust cycles and turn America’s golden age into a global economic era. However, Trump risks becoming a lame-duck president if he fails to reduce grocery prices. Unlike Roosevelt, who froze prices through the 1942 Emergency Price Control Act, Trump has failed to contain inflation. China has moved beyond Reagan-Thatcher trickle-down capitalism, which led to wealth accumulation at the top through privatization, deindustrialization and tax cuts. With a razor-thin majority in Congress and 2026 mid-term losses looming, Republicans must address the cost-of-living crisis.
Trump failed to secure the TPP trade deal due to America’s declining industrial output. By opening trade with China, he can cut costs and stabilize the global economy. Traditional industries are vanishing, replaced by EVs and automation. Immigration sustains Western economies, filling skill gaps and supporting tax revenues. The Joint Economic Committee notes that immigrants comprise 18% of essential US workers and contribute $1.7T to the economy.
Trump won as a “no-war” president. His foreign policy, as Rubio stated, prioritizes national interest over international agreements. Trump and Xi can foster trade deals for global peace and prosperity. China remains committed to avoiding unprovoked war and will allow consumers to buy imported EVs under $12K while reducing subsidies for US manufacturers.
By delinking the economy from global politics, Trump can succeed where his predecessors failed, avoiding endless wars. He must focus on recovering the $2.4T lost in Afghanistan, as per the Afghan Papers in The Washington Post. A peaceful Pakistan, free from Indian-backed terrorism, will emerge as a key trade and investment hub in the region.
—The writer is a contributing columnist based in Karachi.
