POLITICO Tech ‘Gloves off’: A former Trump trade official on his China fight
Apr 10, 2025
Nazak Nikakhtar, a former Commerce Department official during Trump’s first term and a law partner at Wiley, delves into the heated trade war with China. She emphasizes the vulnerability of the tech industry facing Beijing's retaliation amid soaring tariffs. Nikakhtar discusses the complexities of U.S.-China economic decoupling and the need for local supply chains to mitigate crises. She raises concerns about national security intertwined with corporate influence, particularly regarding companies like Huawei, painting a vivid picture of the geopolitical landscape.
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Escalating Trade War and Decoupling
- The U.S.-China trade war escalated dramatically with tariff rates exceeding typical levels, signaling a potential decoupling.
- China's export restrictions target essential U.S. manufacturing inputs, maximizing the impact.
Decoupling Feasibility and Challenges
- Complete decoupling from China is possible, as the two economies were less integrated 25 years ago.
- However, rapid decoupling poses challenges for the U.S. industrial base, which relies on Chinese supply chains.
China's Strategic Advantage: Industrial Diamonds
- China controls the supply of industrial diamonds, crucial for various U.S. industries, including semiconductors and defense.
- This vulnerability allows China to target strategically during trade disputes.