The stage is being set for a global trade war after the inauguration of Donald Trump; one centered around–but not limited to–China and the United States.
Trump aide Anthony Scaramucci said Tuesday that Washington would best Beijing, in any kind of battle. Scaramucci made the remarks, in a bid to assuage elite investors’ concerns about the President-elect, at the World Economic Forum in Davos, Switzerland.
“What are they going to do, [are] they going to move against our move for fairness?” he asked rhetorically, according to the BBC. Scaramucci also claimed Trump “does not want a trade war,” but outlined his preparedness for such a conflict.
“That’s going to cost them more, way more than it is ever going to cost us, and I think they know that,” he added.
The move came just days after Trump reiterated his belief that the “One China” policy could be used by the US as leverage, in bilateral economic discussions. China’s Foreign Ministry immediately pushed back on the statement afterward, describing the matter as “non-negotiable.”
Scaramucci also made his statement just hours after The Global Times, a state-run Chinese tabloid, claimed that Beijing could seek to respond to unilateral Trump initiatives by targeting US interests in Europe.
“Trump has shown far less interest in and attached less importance to Europe than his predecessors,” the column stated, describing him as “inclined to favor Russia and the UK, while disregarding the role of continental European countries.”
“If his policies are about to reflect his thinking, the pattern of the whole of Europe will be reshaped,” the editorial said.
The Global Times also noted Trump’s criticism of NATO, alongside his attacks on “One China.”
China, the publication also stated, “may have to improve relations with some countries so as to have more leverage in its game with the US.”
“One China” refers to Beijing’s insistence that foreign partners refrain from officially recognizing Taiwan.
Taiwan was seen by the US throughout the first half of the Cold War as the only legitimate government of China.
Washington has abided by “One China” for roughly four decades, on a bipartisan basis. The policy was formulated by Richard Nixon and implemented by Jimmy Carter.
After his shock election, Trump immediately made waves in US-China policy circles, when he accepted a congratulatory phone call from Taiwanese President Tsai Ing-Wen. The set-piece had been in the works for weeks, despite Trump’s insistence that it had been impromptu.
Weeks later, Trump pledged to reconsider “One China.”
The Global Times has claimed the US economy will be “paralyzed” if the Trump administration attempts to unilaterally impose tariffs on Chinese imports.
“A batch of Boeing orders will be replaced by Airbus,” the tabloid stated in November. “US auto and iPhone sales in China will suffer a setback, and US soybean and [corn] imports will be halted. China can also limit the number of Chinese students studying in the US.”
