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China Fires Warning Shot in Trade War Against Trump

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"In response, China took retaliatory steps of imposing tariffs on U.S. chicken and automotive products".

Trump voiced his readiness to work with Xi to strengthen US-China cooperation and expressed his belief that US-China relations will witness even greater development. The article threatened a "tit-for-tat" response, saying that sales of American cars, airplanes, iPhones and soybeans would suffer and that China could limit the number of students who go to the United States to study. A batch of Boeing orders will be replaced by Airbus. "Both China and the US suffered losses as a result. China can also limit the number of Chinese students studying in the United States", the article warns.

CNN interviewed residents of China after Trump's win, finding confusion and surprise.

Trump as a shrewd businessman will not be so naïve.

How Trump will handle relations with China is one of the biggest questions in his foreign policy. The first reaction from Trump's office indicated that the president-elect may have softened his stance on China a little bit. "I'm sure the Sino-U.S. relations will achieve better development", Trump added. "Finally, the new president will be condemned for his recklessness, ignorance and incompetence", the newspaper said in an editorial.

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However, he also indicated he is not interested in getting involved in far-off squabbles, and decried the proposed Trans-Pacific Partnership (TPP) free-trade deal - which encompasses several other Asian countries and has been seen as an effort to bolster USA influence - as a threat to U.S. jobs. While I don't see a trade war on the horizon, I do think that Trump can convince Apple and other technology companies to add more jobs in the USA that would have normally gone overseas.

In his first telephonic conversation since Trump won the USA presidential election last week, Xi congratulated him on his election victory, state-run CCTV reported.

Would you be willing to pay more for iOS devices if it meant more jobs in the USA?

"At present, there is an important opportunity and huge potential in China-U.S. cooperation", he said.

In the phone call, which took place on Monday Beijing time, the two men agreed to maintain close communications and to meet at an early date.

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