That, along with subsequent comments by Trump that the “one China” policy was up for negotiation, has infuriated Beijing, which views Taiwan as a wayward province, to be brought under its control by force if necessary.
Ross also said new anti-dumping investigations by China were in the pipeline.
Trump has threatened to impose a 45 per cent tariff on Chinese imports and to label China as a currency manipulator, accusing it of devaluing its currency (although most economists agree that the Yuan is now actually overvalued, not undervalued as it was a decade ago).
China’s mandarins appear confident that they have enough in their arsenal to deter Trump, or to inflict pain on the USA economy should they need to.
While Trump made no direct mention of China in his inaugural address, he struck a defiant tone, saying American workers have been devastated by the outsourcing of jobs overseas. “The US system advocates an assertive political style, but inner modesty is essential”.
As Mr. Trump wants to put “America First”, could this be China’s chance to fill the vacuum? His impressing words, “China’s unfair trade behavior is prohibited by the terms of its entrance to the WTO and I intend to enforce those rules and regulations”.
Unfortunately, the incoming administration seems undeterred about the possibility of a trade war with China in the name of economic nationalism.
The Taiwan government said Saturday that it has extended its congratulations to Donald Trump and Mike Pence on becoming us president and vice president, respectively, and looks forward to working with the new administration to advance bilateral ties.
Chinese media sites are not actually allowed to provide independent coverage of the inauguration.
Will President Trump be able to ensure “insurance for everybody”?
Would China really break off diplomatic relations?
Among the difficulties: the U.S.is unlikely to find support from its regional allies on unilateral protectionism, and the interests of some American companies themselves would be in conflict with such an aggressively anti-China approach, Xia said.
Hours before the inauguration began, Chinese media coverage on the event was mostly focused only on the historical high spending on overseeing security during the ceremony – US$100 million – as well as the large masses of protesters flooding Washington. It’s got some real problems…
Shen Jianguang, a Hong Kong-based economist with Mizuho Securities, said China could choose to cut imports from U.S. aviation, car, mechanical equipment and hi-tech suppliers and turn to business rivals such as Airbus.
Therefore, he surely knows that investment from Chinese businesses benefits the USA economy and could help create more jobs for the country.
“China, for example, has accounted for a larger share of ASEAN’s trade than the US or European Union since 2009 and this trend is likely to persist”, Mann said, writing in the World Gold Council’s 2017 Outlook.
“Conflict is inevitable”, Jia Qingguo, a Peking University worldwide relations expert, told the Global Times.
Tsai added that Taiwan was committed to maintaining its democracy and the status quo of peace but would not bow to pressure.
For all those fears there are still some who hope the deal-making president could still manage to strike up a mutually beneficial friendship with Beijing.
“The aim is to use this as an opportunity to interfere in and damage Sino-US relations”, she said.