*

China braces for continued superpower rivalry as Trump

claims

victory

*

Foreign ministry says will continue to work with US on

basis of

mutual respect

*

Trump's proposed tariffs could disrupt supply chains and

hurt

Chinese economy

*

China likely to expand its influence over the Global South

as

U.S. alliances fray

By Laurie Chen

BEIJING, Nov 6 (Reuters) -

China will work with the U.S. on the basis of mutual

respect, it said on Wednesday as Donald Trump closed in on

victory in the

presidential election

, but strategists said Beijing was bracing for bitter

superpower rivalry over trade, technology and security issues.

"Our policy towards the U.S. is consistent," foreign

ministry spokesperson Mao Ning told a regular press conference

in Beijing, when asked how Trump returning to the Oval Office

would affect U.S.-China relations.

"We will continue to view and handle China-U.S.

relations in accordance with the principles of mutual respect,

peaceful co-existence and win-win cooperation," she added.

Chinese strategists however said they expected more

fiery rhetoric and potentially crippling tariffs from Trump,

although some said his isolationist foreign policy could give

Beijing a vacuum to expand its global influence.

"Beijing anticipated a close race in the U.S. election.

Although Trump's victory is not China's preferred outcome and

raises concerns, it is not entirely unexpected," said Tong Zhao,

senior fellow at the Carnegie Endowment for International Peace.

"The Chinese leadership will likely strive to maintain

an appearance of a cordial personal relationship with Trump,

while intensifying efforts to project China's power and

strength."

Da Wei, director of the Center for International Security

and Strategy at Tsinghua University in Beijing, said Trump's

victory "may pose a relatively large challenge to Sino-U.S.

relations" based on his campaign policy proposals and actions in

his previous term.

"Due to Trump's high unpredictability, I think it is

difficult for China to say that there is a fully formed plan to

do "x" when Trump comes to power. It also depends on what

policies the Trump administration implements."

TRUMP TARIFF THREAT

Trump has proposed tariffs on Chinese imports in excess of

60% and ending China's most-favoured-nation trading status, and

analysts say the prospect of a trade war has rattled China's

leadership.

China sells goods worth more than $400 billion annually to

the U.S. and hundreds of billions more in components for

products Americans buy from elsewhere.

"Beijing is particularly wary of a potential revival of the

trade war under Trump, especially as China currently faces

significant internal economic challenges," said Zhao.

"China also expects Trump to accelerate the decoupling

of technologies and supply chains, a move that could threaten

China's economic growth and indirectly impact its social and

political stability."

In response, China is likely to intensify its push for

greater technological and economic self-sufficiency, while

feeling more pressure to bolster economic ties with countries

like Russia, he added.

"Going forward, Beijing would likely be drawing up a

list of clear bargains and interest tradeoffs that it could

float with Washington, in hope that it can focus on its much

needed domestic economic concerns whilst Trump's attention is

occupied elsewhere," said Brian Wong, assistant professor at the

University of Hong Kong who studies grand strategy.

GLOBAL POWER VACUUM

China is likely to shore up ties with the Global South,

Europe and Northeast Asian countries in the event of a Trump

win, given his "transactional, isolationist, anti-globalist and

anti-multilateral foreign policy", said Wong.

Chinese President Xi Jinping and Indian Prime Minister

Narendra Modi reached a rare

rapprochement

last month, while Beijing has tentatively

reached out

to the new Japanese administration this autumn following

years of strained relations.

"China expects the second Trump administration to

further disengage from international agreements and commitments,

creating opportunities for China to expand its influence in

emerging power vacuums," Zhao added.

Trump has unnerved democratically governed Taiwan by saying

it should pay Washington for its defence and that it had taken

U.S. semiconductor business.

"The Biden administration applied high-pressure tactics to

China on Taiwan, with U.S. troops stationed in Taiwan and even

giving weapons to Taiwan ... in a huge break with the former

Trump administration's Taiwan policy," said Shen Dingli, an

international relations scholar in Shanghai. Washington last

month approved a US$2 billion arms sale to Taiwan.

"Trump is not too likely to give Taiwan the same support

in future."