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China Briefing
This Week in AsiaOpinion
Wang Xiangwei

China BriefingWhy China’s best response to Trump is to drive consumption, boost household incomes

No matter what happens next, there is a silver lining to the uncertainties regarding the Trump administration – the chance for China to push on with its “reform and opening-up” at home and abroad

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A copy of the Chinese magazine Global People with a cover story asking ‘Why did Trump win?’ in Shanghai. Photo: AFP

At last, the call came on Monday. Ever since Donald Trump’s US election victory on November 9, many people had wondered when President Xi Jinping (習近平) and Trump, representing the world’s two largest economies, would have their first interaction given the high stakes at play. In an interview shortly after his election, Trump revealed that while he had heard from most world leaders – including a “beautiful” letter from Russian President Vladimir Putin – he hadn’t yet spoken to Xi.

Watch: Donald Trump’s granddaughter speaks Chinese

Mainland state media noted that Xi had sent a congratulatory telegram on the day of Trump’s victory but it took more than five days for Trump to return the courtesy. An official blog by the People’s Daily labelled the delay a breach of etiquette, adding that former president Hu Jintao ( 胡錦濤 ) and President Barack Obama had their first phone call three days after the latter’s election victory in 2008.

Xi Jinping tells Donald Trump cooperation is the only choice for China and the US

The call on Monday appears to have been cordial enough. Xi told Trump that cooperation was the only choice between the two countries while the president elect said that the two leaders would “have one of the strongest relationships for both countries moving forward” and that they had established a “clear sense of mutual respect”.

Pedestrians walk past an Apple Store in Beijing. Apple's stock extended recent losses on Monday after a warning that iPhone sales could suffer if President-elect Donald Trump follows through on campaign threats to impose new tariffs on China. Photo: AFP
Pedestrians walk past an Apple Store in Beijing. Apple's stock extended recent losses on Monday after a warning that iPhone sales could suffer if President-elect Donald Trump follows through on campaign threats to impose new tariffs on China. Photo: AFP

But the amiable tone cannot mask the sense that bilateral ties are most likely headed for choppy waters, particularly on trade and investment, if Trump follows through on his fiery campaign rhetoric – rhetoric that branded China a currency manipulator and proposed 45 per cent trade tariffs on imported Chinese goods.

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Indeed, instead of striving for cooperation in the foreseeable future, avoiding direct confrontation may be more the order of the day.

China, US must avoid eying each other with suspicion during Trump presidency, says Beijing’s ambassador in Washington

From the perspective of Chinese officials, while they have started to prepare for the worst case scenario, they are still waiting for more concrete signs regarding Trump’s policy intentions towards China, including his detailed agenda for the first 100 days and the key appointments to his upcoming cabinet.

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A couple at the US consulate in Shanghai poses for a picture next to a cardboard cutout of US President-elect Donald Trump. Photo: AFP
A couple at the US consulate in Shanghai poses for a picture next to a cardboard cutout of US President-elect Donald Trump. Photo: AFP
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