In the summer of 2018, when former President Donald Trump launched a trade war with Beijing, the Chinese economy was gaining on the United States, and popular opinion suggested it could soon become the world’s largest.

China's commerce ministry on Thursday announced a series of policy measures aimed at boosting the country's foreign trade, including pledging to strengthen financing support to firms and expand exports of agricultural products.

The financial services firms helmed by Lutnick have profited from ties to China, from BGC Group, which has a joint venture in Beijing with Chinese-state owned China Credit Trust, to Cantor Fitzgerald, which has helped take Chinese firms public in the United States.

While the United States does not currently have a free trade agreement with China, the two countries did sign the Phase One trade deal during Trump’s first term. The deal required China to enact structural reforms to its economic and trade regime, which secured “a level playing field for American competitiveness.”

If China is able to seize the opportunity to revitalize its domestic economy and invigorate the multilateral system, Trump’s trade war 2.0 could end up a strategic gift to Beijing.

Mr Trump’s threat of a new trade war puts China’s leaders in a tricky spot. America’s president-elect has talked of imposing tariffs of 60% on Chinese goods. Even if he settles on lower levies, China will feel the need to respond.

US President-elect Donald Trump campaigned on a promise to take a confrontational approach to China, with tariffs as his weapon of choice. But unless his administration adopts a measured approach, his plans may end up harming American businesses and consumers,