Trump ratchets up China risks with Taiwan call, currency comments:

  • President-elect Trump spoke with Taiwan’s President Tsai Ing-wen on Friday. Call has received a lot of attention in the press given that it was the first by a US president or president-elect since Washington switched diplomatic recognition from Taiwan to China in 1979. While China blamed Taiwan for the call, it still lodged a diplomatic protest with the US. Lot of debate as to whether call was a prelude to a shift in US foreign policy. Washington Post said it was “intentionally provocative,” though Vice President-elect Mike Pence played down its significance, describing it as a “courtesy call.” Trump further ratcheted up the potential for tensions for China in series of tweets on Sunday night, accusing it of currency manipulation and displaying its military prowess in the South China Sea. Noted that “”Did China ask us if it was OK to devalue their currency (making it hard for our companies to compete), heavily tax our products going into their country (the U.S. doesn’t tax them) or to build a massive military complex in the middle of the South China Sea? I don’t think so!”