In a whirlwind of policy maneuvers and financial intrigue, the intersection of U.S. politics, global economics, and digital assets has rarely felt more fraught—or more interconnected. Over the past ten days, President Donald Trump’s administration has rolled out a series of policy moves that have left even seasoned geopolitical observers blinking in disbelief. According to William Pesek, writing for Nikkei Asia, Trump’s economic strategies have begun to echo the playbook of China’s Communist Party, blurring the lines between capitalism and state control in ways that would have seemed unthinkable just a few years ago.
Among the most striking developments: Trump has pressured U.S. tech giants like Intel and Nvidia into giving the White House significant stakes—10% and 15% of revenue, respectively. These strong-arm tactics, reminiscent of scenes from classic mafia films, have been coupled with demands for a $550 billion “signing bonus” from Japan as well as similar shakedown attempts directed at South Korea and the European Union. The administration’s acquisition of a “golden share” in Nippon Steel’s deal for U.S. Steel, free of charge, further cements the sense that American capitalism is undergoing a dramatic transformation under Trump’s watch.
But the shift isn’t just about business deals. Trump has also sought to intimidate Goldman Sachs into firing its chief economist for pointing out the inflationary impact of tariffs, sacked the head of the Bureau of Labor Statistics for reporting a slowdown in U.S. unemployment, and directed federal communications authorities to revoke media licenses from organizations reporting unfavorably about his administration. These moves, Pesek notes, are straight out of the authoritarian toolbox, raising alarms about press freedom and the integrity of American institutions.
Perhaps the most consequential gambit, however, is Trump’s ongoing effort to bring the Federal Reserve—the bedrock of U.S. monetary independence—under direct executive control. On August 25, Trump moved to fire Fed Governor Lisa Cook, who was appointed by former President Joe Biden in January 2022, alleging mortgage fraud. Cook, for her part, has pushed back hard, stating that Trump “has no authority to do so.” The move has drawn sharp warnings from economists and market analysts. Aaron Klein of the Brookings Institution called it a “kill shot at Fed independence,” while Kathy Jones at Charles Schwab & Co. told Bloomberg that such actions could force investors to demand higher risk premiums on long-term U.S. Treasuries.
“Although we think it could go either way, our guess is that the Supreme Court of the United States will uphold this move,” said Tobin Marcus of Wolfe Research, noting that the legal protections for Fed governors are the same as for the chair. “A SCOTUS ratification of this move would sharply erode Fed independence, and even the attempt to fire Cook raises obvious concerns.”
Jaret Seiberg of TD Cowen underscored the political nature of Trump’s actions: “There has not been a criminal charge filed against Cook. Nor has Cook gotten a chance to contest the charges before a judge.” The damage, Seiberg warned, is already done to one of the most globally respected U.S. institutions. Indeed, the immediate market reaction was telling: the dollar dipped, while yields on 30-year U.S. Treasuries and gold prices both spiked, signaling investor anxiety over potential inflation and policy uncertainty.
Amid these domestic upheavals, Trump has also moved to reshape the Fed’s leadership. Earlier in August, he named Stephen Miran—his likely pick for Council of Economic Advisors chair—to the Fed Board, where Miran will serve until January 31, 2026. The July Fed meeting already saw two governors dissent from the majority for the first time in over thirty years, suggesting mounting internal pressure for Trump-style rate cuts ahead of the September 16-17 policy meeting. Should Trump succeed in removing and replacing Cook, the Fed could soon be dominated by voices aligned with his economic vision, potentially undermining the institution’s autonomy and credibility for years to come.
These shifts in economic governance come as the Trump administration’s policies appear to be ceding ground to China in key sectors. Jeff Kingston, head of Asian studies at Temple University’s Tokyo campus, observed that Trump’s state-directed assault on electric vehicles and renewable energy is “ceding the future to Xi’s Communist Party.” The U.S., Kingston argues, is forfeiting a “major growth market” and “embracing a loser’s energy,” a move that will have Beijing “popping the champagne corks.”
At the same time, China is accelerating its efforts to reduce reliance on the U.S. dollar—a process known as de-dollarization. In June, People’s Bank of China Governor Pan Gongsheng confirmed that Beijing is actively considering ways to “weaken excessive reliance on a single sovereign currency.” Dan Wang of Eurasia Group noted that “China appears to be accelerating its de-dollarization efforts, though progress remains uneven.” Gary Ng, an economist at Natixis, added that “Trump’s policies have weakened the market’s confidence in the performance of U.S. dollar assets.”
Overlaying all of this is a new and unexpected lever of Chinese influence: cryptocurrency. According to Joshua Chu, co-chair of the Hong Kong Web3 Association, China’s control over cryptocurrency liquidity in Hong Kong gives it unprecedented leverage over the Trump family’s crypto wealth. In July 2025, the Trump family’s crypto ventures—including World Liberty Financial’s token sales (such as TRUMP and MELANIA memecoins) and Eric Trump’s involvement in American Bitcoin—accounted for 40% of their $2.9 billion net worth. This marks a dramatic turnaround from Trump’s earlier skepticism; during his first presidency, he dismissed Bitcoin as “not money” and “based on thin air.” But as Donald Trump Jr. revealed in a Fox News interview, the family “didn’t have a choice” but to embrace crypto after banks refused to do business with them in the aftermath of the January 6 events.
This heavy reliance on crypto is extraordinary for any political family, let alone one at the center of U.S. power. It exposes them to the hyper-volatility of digital assets—and, more importantly, to the machinations of Beijing’s crypto liquidity strategy. China’s plan to liquidate seized virtual assets via Hong Kong’s licensed exchanges is part of its LEAP Digital Assets Policy 2.0, designed to make Hong Kong a dominant virtual asset hub. The so-called “national team”—a network of sovereign wealth funds and state-backed entities with over $1 trillion in assets—can intervene in markets to stabilize, inflate, or deflate crypto values as Beijing sees fit.
In contrast, the U.S. has largely maintained a passive “hodl-only” reserve policy, lacking the flexibility to actively manage crypto liquidity or respond to price volatility. This gives China a unique ability to influence not only global crypto prices but also the fortunes of politically connected actors like the Trump family. As Chu puts it, “Through Hong Kong, China has created a key to cementing the Trump family’s legacy, either to catapult his family wealth to the moon or turn him into the beggar king if he misbehaves.”
These financial dynamics are mirrored in foreign policy. The Trump administration has taken a tough stance toward India for importing Russian oil, while showing notable leniency toward China—a far larger importer of Russian energy. This selective pressure, as observed by multiple reporters, points to China’s growing geopolitical leverage, which may now extend beyond rare earths and into the realm of financial influence over America’s First Family.
The convergence of these trends will be on full display as Eric Trump attends a major crypto conference in Hong Kong, a move that underscores just how tightly the Trump family’s political and financial fortunes are now woven into the fabric of China’s strategic crypto market. In today’s world, the lines between economic policy, political power, and digital assets are blurring fast—and the consequences may well shape the future of both nations for years to come.
