Bloomberg Talks: Elizabeth Economy Talks Trump/Xi Relations
Date: November 25, 2025
Host: Bloomberg
Guest: Dr. Elizabeth Economy, Senior Fellow at Hoover Institution, Stanford University
Episode Overview
In this episode, renowned China scholar Dr. Elizabeth Economy joins Bloomberg to discuss the evolving dynamics of U.S.-China relations, focusing on the interplay between President Trump and President Xi Jinping, the growing tensions around Taiwan, China’s long-term strategic mindset, and the perspectives of regional actors like Japan. The conversation covers internal Chinese developments, U.S. policy ambiguities, and the complex web of regional security concerns in East Asia.
Key Discussion Points & Insights
Xi Jinping’s Military Overhaul & Uncertainties
- Xi’s Reshaping of the Military
- Xi Jinping has radically restructured China’s military since taking power, modeling parts on the U.S. joint structure and advancing military hardware and capabilities.
- “He’s been a transformative military leader.” (Elizabeth Economy, [01:10])
- Despite modernization, frequent purges of top military officers create uncertainty about Chinese military readiness.
- “The constant roiling of the senior Chinese military leadership, I think, is a real challenge for Xi Jinping and the party leadership.” (Elizabeth Economy, [01:56])
Taiwan: Heightened Threats and Regional Fallout
- Growing Pressure on Taiwan
- Chinese rhetoric and military actions near Taiwan have intensified.
- “The rhetoric out of Beijing and ... the military activity around Taiwan, the air flights, the crossings in the Taiwan Strait ... have only increased.” (Elizabeth Economy, [02:30])
- Xi expects the military to be ready to move on Taiwan by 2027, not necessarily indicating imminent action but setting a preparedness deadline.
- “He’s just put that down as a marker for when he would want the military to be prepared to take Taiwan.” (Elizabeth Economy, [03:16])
- On-the-ground insight: Chinese officials convey impatience, suggesting “China is not prepared to wait 200 years, that it is prepared to take any form of military action.” ([03:30])
- Chinese rhetoric and military actions near Taiwan have intensified.
- Japan’s Reaction & Escalation
- Japan’s statements about defending Taiwan triggered swift and intense responses from China, including economic boycotts.
How China Views Trump—and U.S. Policy
- Chinese Perceptions of Trump
- Trump is seen as unpredictable but open to deal-making.
- Xi’s recent direct outreach suggests probing if Trump would negotiate on Taiwan amid broader U.S.-Russia negotiations.
- “The perception in China is that President Trump is a deal maker ... willing to put everything on the table and to trade things in and out.” (Elizabeth Economy, [04:56])
- U.S. Policy Ambiguity on Taiwan
- Concern exists over Trump’s commitment to Taiwan—he’s never clearly affirmed its strategic value to the U.S.
- “He’s never come out and said that Taiwan is a very valuable partner ... He’s been critical of Taiwan on some fronts.” (Elizabeth Economy, [05:37])
- Secretaries Rubio and Hegseth are staunch supporters of Taiwan and Indo-Pacific allies, but fractures within the administration over issues like Russia foreshadow possible splits over China/Taiwan policy.
- Concern exists over Trump’s commitment to Taiwan—he’s never clearly affirmed its strategic value to the U.S.
China’s Long Game vs. Washington’s Political Timelines
- Strategic Patience and Vision
- Xi and the Chinese system operate on decades-long timelines, with clear milestones for global leadership in tech and other key sectors.
- “They have a long-term vision and a long-term strategy to achieve that vision. This is the long game.” (Elizabeth Economy, [07:35])
- Xi is seen as preparing for another five-year term beginning in 2027, with expectations to remain influential even beyond that.
- “We can count on at least another five-year term beginning in 2027 ... After that, I imagine he’ll still want to at least be in the background.” (Elizabeth Economy, [08:01])
- Xi and the Chinese system operate on decades-long timelines, with clear milestones for global leadership in tech and other key sectors.
Public Opinion and Internal Diversity in China
- On the Chinese Street
- Chinese citizens are divided: some want more openness to the West, others back Xi’s assertiveness.
- “There are as many different opinions within China as there are in the United States.” (Elizabeth Economy, [08:34])
- Not universally behind Wolf Warrior diplomacy or post-Ukraine Russian alignment.
- Chinese citizens are divided: some want more openness to the West, others back Xi’s assertiveness.
China-Japan Friction & Security Geography
- Proximity and Security Fears
- Japan and China are close—about 70 miles at the nearest point—fueling disputes like the Diaoyu/Senkaku Islands.
- “The distance between the closest point of Japan and China is only 70 miles.” (Elizabeth Economy, [11:29])
- Japan’s direct stake in Taiwan’s security is shaped by history (colonial legacy), language ties, and reliance on trade routes.
- Anxiety in Tokyo: if China succeeds in Taiwan, “is Japan next?”
- Japan and China are close—about 70 miles at the nearest point—fueling disputes like the Diaoyu/Senkaku Islands.
U.S. Commitments: Allies’ Wariness
- Confidence in U.S. Support
- Under Biden, U.S. alliance commitments were clear. Under Trump, there’s a strong sense of strategic ambiguity and unpredictability.
- “There’s a much higher degree of uncertainty about our commitment to our allies and partners.” (Elizabeth Economy, [13:24])
- Even among U.S. officials, the initial phase of the Trump administration raised doubts about Aukus and other Indo-Pacific initiatives.
- Under Biden, U.S. alliance commitments were clear. Under Trump, there’s a strong sense of strategic ambiguity and unpredictability.
Notable Quotes & Memorable Moments
- “He’s been a transformative military leader.” – Elizabeth Economy ([01:10])
- “[On Xi's readiness deadlines] He’s just put that down as a marker for when he would want the military to be prepared to take Taiwan.” – Elizabeth Economy ([03:16])
- “The perception in China is that President Trump is a deal maker ... willing to put everything on the table and to trade things in and out.” ([04:56])
- “It’s unclear ... and I think we’ve seen a fracturing ... on the Russia issue. It’s not impossible that we’d have a similar fracturing on the China, Taiwan issue.” ([05:57])
- “They have a long-term vision and a long-term strategy ... This is the long game.” ([07:35])
- “There are as many different opinions within China as there are in the United States.” ([08:34])
- “The distance between the closest point of Japan and China is only 70 miles.” ([11:29])
- “There’s a much higher degree of uncertainty about our commitment to our allies and partners.” ([13:24])
Timestamps for Key Segments
- Xi's Military Reshuffle & Readiness: 01:10–02:07
- Taiwan Threat & Japan’s Involvement: 02:29–04:05
- How the Chinese View Trump & U.S. Policy: 04:19–05:24
- U.S. Commitment and Policy Fractures: 05:35–06:20
- China’s Strategic Timeframes: 07:05–08:13
- Chinese Public Opinion: 08:34–09:34
- Japan-China Proximity and Security Dilemma: 10:52–11:25
- U.S. Ally Confidence Gap: 12:42–13:24
Episode Tone & Style
The conversation remains candid, analytical, and pragmatic. Dr. Economy combines rigorous scholarship with real-world policy insight. The tone is thoughtful, laced with urgency regarding East Asian security, and balanced with nuance about internal Chinese diversity and the unpredictability of American politics.
This detailed breakdown serves listeners seeking a comprehensive yet accessible guide to the critical issues shaping U.S.-China relations and East Asian security, as discussed by one of the leading analysts in the field.