Donald Trump has stated in several occasions that he is going to go hard on some of the biggest trading partners of the United States including China and Mexico. According to source, Mr. Trump will officially accuse China for artificially depreciating its currency to reduce export costs. The current Chinese policy has motivated many foreign companies to move their production facilities in China to reduce cost.
Important announcements are likely to take place in April at a US Treasury meeting addressing the Chinese currency issue. This means, China will have a year to change its policy which will lead to an increase of their national currency against US dollar- a scenario that the Chinese government has prevented from happening for a long time. If China fails to cooperate within the deadline, the country’s exports will face hefty tariffs.
Besides international trades, Donald Trump is also likely to face China in many other grounds including the “Taiwan issue”. If he visits Taiwan as the President of the United States, this will definitely put China in a rather uncomfortable position provided that the country considers Taiwan as its part. Mr. Trump is also likely to increase US presence in the South China Sea where the Chinese government is building islands to extend their sovereign rights. The heavy Chinese presence near the highly significant maritime trade route has already raised concerns in the international community.
According to experts, the president-elect is determined to secure better trading deals from his Chinese counterparts and he wants to ensure that by putting the Asian powerhouse under pressure in different fronts, he will secure the desired edge when China enters the negotiation table. China is likely to make concessions in trade in that case to receive US acknowledgment on issues like South China Sea and Taiwan.
However, it is highly unlikely that Donald Trump will secure an easy diplomatic win over China. With the country holding billions of dollars worth US treasury bonds, selling them off may plunge the US dollar- a move that China may not consider but could keep as an option if things begin to get too tensed with the US government.