![Dynamic Capital Dynamic-Capital](https://www.dynamiccap.com/wp-content/uploads/2019/09/architectural-design-architecture-buildings-936237-870x350.jpg))
[ffb_paragraph_0 unique_id=”pk3copb” data=”%7B%22o%22%3A%7B%22gen%22%3A%7B%22ffsys-disabled%22%3A%220%22%2C%22ffsys-info%22%3A%22%7B%7D%22%2C%22text-is-richtext%22%3A%220%22%2C%22align%22%3A%22text-center%22%7D%7D%7D”][ffb_param route=”o gen text”]Over the past several decades, the US government (along with most of the world) has officially only had contact with Taiwan through the Chinese government (known as the “One China” policy”), despite internal differences resulting in Taiwan considering itself a sovereign nation and having its own government. However, all of that changed once Donald Trump became president elect – he accepted a congratulatory call from the leader of Taiwan, and has openly discussed reevaluating and possibly ending the “One China” policy.
Throughout his campaign, he has painted China as an adversary rather than an important trading partner, calling them currency manipulators and even claiming they are responsible for the “hoax” of global warming to reduce their competition from American manufacturing (though he has since updated his opinion to global warming being a real phenomenon). It appears Donald Trump intends to use the possibility of ending the One China Policy as a negotiating tactic to get more favorably results from interaction with China, however China’s foreign ministry have responded saying the policy is the foundation of ties between the two countries and was non-negotiable, and the US was clearly aware of their position.
According to the Chinese government’s state run media, China Daily Editorial Sunday, “If Trump is determined to use this gambit on taking office, a period of fierce, damaging interactions will be unavoidable as Beijing will have no choice but to take off the gloves.” Other influential state run outlets have doubled on that stance, saying China would be forced to take “strong countermeasures” if Trump breaks the policy. The Global Times (a state run tabloid) reported, “The Chinese government will be prompted to speed up the Taiwan reunification and mercilessly combat those who advocate Taiwan’s independence.”
Through its state controlled media outlets, China seems to be suggesting that Donald Trump’s endorsement of Taiwan was merely a ploy to further his administration’s short term interests, saying “Taiwan may be sacrificed as a result of this despicable strategy,” per The Global Times. Yang Yizhou, deputy head of China’s government run ‘All China Federation of Taiwan Compatriots’, told a meeting on cross-straits relations with Beijing on Saturday that, “If you do not beat them until they are bloody and bruised, they will not retreat.” Yang went on to add, “we must use bloodstained facts to show them that the road is blocked.”
Though China has in the past issued ominous warnings that his did not ultimately act on, it seems this issue hits very close to home, literally and metaphorically speaking, and it is not one up for negotiation. China has even gone as far as to suggest it is willing to use physical means to ramp up the unification process with Taiwan if they begin having international relations with influential foreign governments. Though it has suggested this may be a pre-inauguration bluff, China is currently preparing countermeasures in case Trump decides to continue backing his bet. If you total all imports and exports, and do not consider the European Union as a single entity, China is the number two trading partner with America – a trade war between the two countries could have devastating effects on reduced exports and higher prices for consumers in both nations. If the hypothetical trade war was to escalate, they are also two of the top 3 armies in the world.[/ffb_param][/ffb_paragraph_0]