International

Trump picks Twitter fight with China

U.S. President-elect Donald Trump.

U.S. President-elect Donald Trump.   | Photo Credit: Reuters

U.S. President-elect Donald Trump fired a Twitter broadside at China on Sunday, accusing the Asian giant of currency manipulation and military expansionism in the South China Sea.

The taunt came two days after Mr. Trump risked offending Beijing by accepting a call from the Taiwanese President, and heralded the prospect of a trade battle between the world's largest economies.

China was a frequent target of Mr. Trump during his presidential campaign and, as he prepares to take office next month, every sign points to his taking an aggressive line with Beijing.

"Did China ask us if it was OK to devalue their currency [making it hard for U.S. companies to compete], heavily tax our products going into their country [the US doesn't tax them] or to build a massive military complex in the middle of the South China Sea?" he demanded, adding: "I don't think so!"

China is the United States' largest trading partner, but America ran a $366 billion deficit with Beijing in goods and services in 2015, up 6.6 percent on the year before.

Mr. Trump has vowed to formally declare China a "currency manipulator" on the first day of his presidency, which would oblige the U.S. Treasury to open negotiations with Beijing on allowing the renminbi to rise.

With China holding about a trillion dollars in U.S. government debt, Washington would have little leverage in such talks, but the declaration would harm ties and boost the prospect of a trade war.

On Friday, Trump courted Chinese anger by accepting a congratulatory call from Taiwan's president Tsai Ing-wen.

Mr. Trump's incoming vice-president, Mike Pence, played down the significance of the call, describing it as a courtesy, and said any new policy on China would be decided after his inauguration.

China responded cautiously to the call, with state media putting it down to Mr. Trump's "inexperience."

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Printable version | Aug 9, 2020 6:12:55 AM | https://www.thehindu.com/news/international/Trump-picks-Twitter-fight-with-China/article16763333.ece

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