Donald Trump’s upcoming second term as US President is set to introduce sweeping reforms led by billionaire Elon Musk and Indian-origin entrepreneur Vivek Ramaswamy. Appointed to head the Department of Government Efficiency (DOGE), the duo will play a key role in transforming US governance.
According to Zheng Yongnian, dean at the Chinese University of Hong Kong (Shenzhen), this initiative poses a significant threat to China’s political and economic systems.
“If DOGE is successful, these reforms could lead to a competitive US system akin to ‘state capitalism with American characteristics,’” Zheng said, warning that it could exert pressure on China and Europe. He further noted, “A more efficient US political system would put huge pressure on China’s current system. Of course, the pressure is not exclusive to China but also affects others, especially Europe.”
Though DOGE is not a government agency, it will provide advisory support to the White House, focusing on structural reforms and reducing bureaucratic inefficiencies. Trump described the move as a plan to “drive large-scale structural reform and create an entrepreneurial approach to government never seen before.” Musk and Ramaswamy aim to eliminate thousands of regulations and streamline the workforce.
In response, Zheng urged China to adopt its own institutional changes and prioritize domestic growth through the “dual circulation” strategy. “Fully tapping into internal growth potential is something we must do,” he emphasized.
The reforms, coupled with Trump’s tough stance on tariffs and contentious geopolitical issues, are expected to increase US-China tensions when he assumes office on January 20.
