Too big to fail: China maps out its Trump strategy

A high-speed train runs across a farmland in Binyang County of Nanning City, capital of south China's Guangxi Zhuang Autonomous Region. Photo: Xinhua/Huang Xiaobang

A high-speed train runs across a farmland in Binyang County of Nanning City, capital of south China's Guangxi Zhuang Autonomous Region. Photo: Xinhua/Huang Xiaobang

Published Dec 14, 2016

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Beijing - When Donald Trump becomes US president next month, one issue above all others could force his

new administration to work closely with China and underscore why

he and Beijing need each other - North Korea.

A nuclear armed North Korea, developing missiles that could

hit the US west coast, is clearly bad news for Washington but

also Pyongyang's sometimes-reluctant ally Beijing, which fears

one day those missiles could be aimed at them.

"There is enormous space for the two countries to cooperate

on North Korea. The two must cooperate here. If they don't, then

there will be no resolution to the North Korean nuclear issue,"

said Ruan Zongze, a former Chinese diplomat now with the China

Institute of International Studies, a think-tank affiliated with

the Foreign Ministry.

"It's no good the United States saying China has to do more.

Both have common interests they need to pursue, and both can do

more," he added.

North Korea is a tricky proposition even at the best of

times for China, and simply easing up on UN sanctions as a way

to express displeasure at Trump's foreign policies could

backfire badly for China, said one China-based Asian diplomat.

"They can't really do that without causing themselves

problems," the diplomat added, pointing to China's desire to

denuclearise the Korean peninsula.

Taiwan tension

From North Korea to Iran to a closely entwined business

relationship worth $598 billion in 2015, the two countries have

broad common interests, and China expects Trump to understand

that.

While China was angered by Trump's call this month with

Taiwan President Tsai Ing-wen, and then casting doubt over the

future of the "one China" policy under which the US recognises

Taiwan as being part of China, it was also quite restrained,

said a senior Beijing-based Western diplomat

"China's game now is to influence him and not antagonise

him," he said, speaking on condition of anonymity.

China believes the two countries need each other, and as

Trump is a businessman he understands that, the People's Daily's

wrote last month.

"The importance of the China-US relationship goes without

saying, and can be said to be too big to fail," the communist

party mouthpiece wrote in a commentary.

Read also:  China warns Trump against ignoring its Taiwan interests

China also expects a transactional relationship with the

deal-making Trump, especially on trade, even if for Beijing

Taiwan is completely off limits for negotiation.

"Trump is a businessman. He wants a deal," a source with

ties to the Chinese leadership told Reuters, requesting

anonymity. "He wants the biggest benefit at the smallest cost."

On the campaign trail, Trump threatened punitive tariffs on

China, and has recently repeated his criticism of Chinese trade

policy, dovetailing with his Taiwan comments.

"This is provocation, but war is unlikely," a second Chinese

source with leadership ties said of Trump's Taiwan moves.

"The Chinese side will not easily yield," the source said.

"We expect tensions."

Trade interests

Wang Huiyao, head of the Centre for China and Globalisation

and a government adviser, said China should invite the United

States to join the Beijing-lead Asian Infrastructure Investment

Bank.

"He will pursue US interests and to do so he cannot ignore

the huge benefits that come from China-U.S. trade relations,"

Wang said.

The Asian diplomat said some Chinese officials had expressed

"euphoria" at Trump's election, believing it marked the end of

U.S. dominance in the world and represented China's chance to

seized the initiative.

But Trump's unexpected move to put the Taiwan issue centre

stage in relations with China had put an end to that.

"They're not as happy now," he said.

To be sure, there are voices in China seeing opportunity in

a Trump presidency.

Huo Jianguo, former head a trade policy body under China's

Commerce Ministry, said Trump is likely to reduce the United

States' engagement with the world, presenting an opening for

China.

"Under Obama, China-U.S. relations had already deteriorated

to their worst possible level. Trump will not continue to

ratchet up what were clearly ideological attempts to suppress

China," Huo said.

"China should not seek to immediately take the lead in

global governance. They should first lead RCEP to become

successful, then from here China's global influence can take

root," Huo said, referring to a Southeast Asian-backed free

trade deal China has championed.

Even the Global Times, an influential and normally

stridently nationalistic tabloid, has sought to temper

expectations on how China could use a Trump presidency to its

advantage.

"China still cannot match the US in terms of comprehensive

strength," it said in an editorial. "It has no ability to lead

the world in an overall way, plus, neither the world nor China

is psychologically ready for it. It's beyond imagination to

think that China could replace the U.S. to lead the world." 

REUTERS

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