The exchange infuriated Beijing, as it considered it running against the bilateral protocol of “One-China” policy, under which Washington views Taiwan as part of China.
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Trump says the United States did not necessarily have to stick to its long-standing position that Taiwan is part of “one China”, questioning almost four decades of US policy.
Reaction from Taiwan was muted.
Lu parried questions whether China consider it a snub as Trump has not so far spoken to Xi even though he dialled 18 world leaders after taking over office on January 20.
The issue, along with Mr Trump’s aggressive comments on trade issues and on China’s controversial claims to most of the South China Sea, had threatened to badly undermine relations between the world’s two biggest economies. It shields Mr. Xi from an unpredictable outburst from a leader who berated the Prime Minister of Australia, one of Washington’s closest allies – and gives US officials similar cover.
Xi hailed Trump’s assurance and said the policy forms the political bedrock for the China-US relationship.
Lu also didn’t answer questions on whether China had to agree with the USA on a deal on trade or other issues to elicit Trump’s endorsement. “Both sides absolutely can become very good cooperative partners”.
Lu also said China “attaches extreme importance on U.S”.
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“If you want to get something done in terms of economics and trade, you don’t overshadow it with an issue like that”, said Alan Oxley, a former Australian trade negotiator.
Soon the spat turned ugly with Trump levelling currency manipulation charges against China and the official Chinese media launching tirades against Trump.
“Trump has reassured people that he will be a responsible president”, he told Reuters. “Now we can have a predictable relationship”, Shen told The Guardian newspaper. “Now we can do business”. Still, the United States passed the Taiwan Relations Act, allowing the country to maintain unofficial ties to the nation. China lodges swift protest, blaming Taiwan for the petty move. Beijing has never renounced the use of force to bring Taiwan under its control.
The telephone call came on the eve of a formal summit between Trump and Japan’s Prime Minister Shinzo Abe set to take place in Washington on Friday.