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Today on TAP from the American Prospect. Ideas. Politics. Power.

JANUARY 23, 2026

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KUTTNER ON TAP

The big winner: China

Trump claimed that his Greenland foray was needed to contain the influence of China and Russia in the Arctic. The result: China is more globally powerful than ever

Trump’s bizarre threats to take Greenland by military force, now rescinded, added one more signal to America’s usual allies that the U.S. could no longer be trusted. One ironic result is closer economic relations between the rest of the world and China. This is far more consequential than whatever deterrent effect on China that might be achieved by more U.S. bases in Greenland.

Europe, especially Germany, was already moving in the direction of closer economic ties with China. In the wake of the Greenland debacle, there will be more trade deals and more investment, both by Europe in China and by China in Europe, increasing Europe’s dependence on Beijing.

Last Friday, following a meeting between Canadian Prime Minister Mark Carney and China’s leader Xi Jinping, Canada announced an agreement for imports of Chinese electric vehicles, at Canada’s lowest tariff rate of 6.1 percent, down from a current rate of 100 percent matching U.S. tariff rates. This is a direct challenge to U.S. policy of keeping Chinese EV’s out of North America.

Yet Trump has repeatedly contradicted himself on EV policy. In September, he ended the $7,500 tax credit for domestic EV purchases and weakened fuel efficiency standards. He is attempting to cut EV use both as a favor to fossil fuel companies and to restrict Chinese auto exports. Yet in a speech last week at the Detroit Economic Club, Trump declared that Chinese automakers were welcome to produce in America. “Let China come in,” he said.

China already has such a massive lead in EV production that it almost doesn’t matter whether Trump is welcoming or hostile. According to The Wall Street Journal, China has the capacity to produce 46 million EVs this year and is expected to sell between 20 and 30 million. U.S. automakers sold only about one million EV units in 2025, and growth is expected to be minimal in 2026. In Europe, China’s BYD projects having about 2,000 dealers by the end of 2026, up from 284 at the end of 2024.

Meanwhile, despite supposed concerns about Chinese military presence in the Arctic, Trump is notoriously lax in his policies regarding China’s access to sensitive technologies. His cronies just consummated a deal allowing TikTok to continue operating in the U.S., by bringing in enough outside investors to dilute Chinese majority control. But China’s ByteDance will still have 20 percent ownership and substantial influence.

The deal was vintage Trump. “I am so happy to have helped in saving TikTok!” Trump said in a post Thursday night, in which he effusively thanked Xi Jinping “for working with us and, ultimately, approving the Deal. He could have gone the other way, but didn’t, and is appreciated for his decision.”

In another action that has concerned critics of Trump’s soft technology line on China, Trump officials forced the resignation of two senior Commerce Department officials responsible for keeping sensitive technology out of China’s hands. Liz Cannon, the executive director of the Office of Information and Communications Technology and Services, submitted her resignation, the culmination of a pressure campaign. This follows the forced exit of one of her deputies.

Trump’s mental state is so demented that he can’t keep straight which of his policies contradict and undermine which of his other policies. Greenland was always about coveting a massive piece of real estate. The rationale of containing China in the Arctic was tacked on after the fact. His China policies are a blend of ignorance and opportunism that will leave Beijing that much stronger in the world.