Woo said Xi also sounded conciliatory and noted that he recognized the problems globalization brings.
“He said we have to address the consequences that globalization has [brought with regard to] inequality. That shows he understands the political constraints Trump is facing,” he said.
Woo said both sides appear willing to talk. But he said ultimately the U.S. and China could be at odds, if Trump’s policies succeed in driving up U.S. growth, and the U.S. dollar. That would elevate tensions about the currencies and could mean the U.S. would at that point call China a manipulator.
Markets have been wrestling with how much to believe the protectionist rhetoric from Trump and some members of the incoming administration. Trump has said he wants to impose tariffs, and specifically he has repeatedly targeted cars produced outside the U.S. by both U.S. and foreign automakers.
Trump also predicted in an interview over the weekend that other countries besides Britain will leave the European Union, which he described as an instrument for Germany. He also again called NATO obsolete, though he added that it is important.
“We don’t know how much credence to give it. Some people take him literally. Should people take him literally? The Chinese don’t know,” said Chandler. He said the U.S. has embraced free trade policies since the early 20th century, and NATO was founded after World War II to protect Europe against the threat of the Soviet Union.
Chandler said there are other questions raised by Trump’s comments, which are at odds with a number of his appointees. “It also begs the question of where is power going to be. My sense is power is going to be in the White House, not in the Cabinet,” he said.
Correction: This story was revised to correct the spelling of Pierpont.
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