BEIJING — Democrats taking power from Republicans in Congress raises risks for U.S.-China tensions around Taiwan, while hardening tech competition, analysts said.
The Democrats swept this week's midterm elections, taking majorities in the House and Senate and flipping governors' offices in places like Texas, Nevada and Iowa. Most of the new election winners, however, won't begin their terms until January.
Before then, U.S. President Donald Trump and Chinese President Xi Jinping will likely maintain their fragile truce by meeting twice: in Shenzhen this month, and in Miami, Florida, next month.
"As a lame duck who is increasingly focused on his personal legacy rather than the Republican Party's success, Trump may resist increased pressure for confrontation with China and continue his pursuit of 'strategic stability,'" Gabriel Wildau, managing director at Teneo, said in an email.
High on the Democrats' agenda is removing Trump's tariffs, as part of a broader focus on addressing domestic inflation, CNBC has learned.