China Warns America against Allowing Taiwanese President into country


China Warns America against Allowing Taiwanese President into country


Taiwan President Tsai Ing-wen will pass through the United States when she visits Latin America next month, the Taiwan Foreign Ministry said on Thursday, angering China which urged the United States to block any such stopover. China is deeply suspicious of Tsai, who it thinks wants to push for the formal independence of Taiwan, a self-governing island that Beijing regards as a renegade province, ineligible for state-to-state relations.

 Details of the stopovers will be disclosed before the end of this week, the ministry said. China said Tsai’s intentions were clear and urged the United States not to let her in.

“We hope the U.S. can abide by the ‘one China’ policy…and not let her pass through their border, not give any false signals to Taiwan independence forces, and through concrete actions safeguard overall U.S. China relations and peace and stability in the Taiwan strait,” Hua Chunying, a Chinese Foreign Ministry spokeswoman, told a briefing in Beijing. The transit details are being closely watched as Taiwan media has speculated Tsai will seek to meet President-elect Donald Trump’s transition team ahead of his January 20 inauguration. Full story

Up until now, we have spoken only of China’s strength and that is not because we favour China, but because the trend was in China’s favour. A new trend is dangerously close to taking shape, and if it does, then there is going to be a huge trade war between China and America. Initially, the U.S will lead and depending on how well the Trump administration handles the situation; the win could be a long term win or a short term win.  China has become used to a weak president and as a result, they are pushing back very strongly. However, they have grossly miscalculated Trump and when they see that he is not going to back down; they will come to the negotiating table. In the end, the Chinese are businessman and they prefer to negotiate as opposed to going to war. The long term trend for China is still bullish, so any strong reaction from the Chinese markets would have to be viewed through an optimistic lens.  For the record, it is possible for a strong America and a strong China to coexist. In other words, it does not have to be winner take all. We can have a thriving US economy and a booming Chinese economy. At the moment the trend is not clear but what is clear is that the rhetoric will increase until Trump takes office. The Chinese have no respect for weakness, and Obama sadly is almost the perfect definition of the word at least as far as the Chinese and Russians are concerned.

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