Bashed on trade, Beijing may benefit from President Trump

The world's second-largest economy is US president-elect Donald Trump's designated bogeyman, threatening it on the campaign trail with tariffs for stealing American jobs, but analysts say US protectionism could create opportunities for Beijing.
For months Trump has railed against China's trade practices, saying it artificially lowers its currency to boost its exporters at the cost of American manufacturing jobs, and threatening to levy a 45 per cent tariff on all Chinese-made goods.
He also denounced the Obama administration's Trans-Pacific Partnership (TPP) trade agreement with Asia-Pacific economies - excluding China - that accounts for nearly 40 per cent of the global economy.

Before the election two of Trump's advisors wrote in Foreign Policy magazine that he would "never again sacrifice the US economy on the altar of foreign policy by entering into bad trade deals like the North American Free Trade Agreement, allowing China into the World Trade Organisation, and passing the proposed TPP".
The TPP has yet to be ratified by the US and "is now dead", said Mark Williams of Capital Economics.
The demise of that deal, intended to bolster US influence in the region, hands Beijing an opportunity to forge an Asia-focused trade agreement of its own that "excludes the US", he added.

Moreover, "if the US is less engaged in Asia, Beijing will have an opportunity to shape regional political and economic integration on its own terms".

China has already embarked on negotiations to create the Regional Comprehensive Economic Partnership, a free trade area encompassing the southeast Asian grouping ASEAN, China, India, Japan, South Korea, Australia and New Zealand.
Something of a mirror image to TPP, it includes six of the Washington-led grouping's 12 members - but not the US.
It would encompass more than three billion people and Australian foreign minister Julie Bishop told media Thursday that if TPP does fail, "then the vacuum that would be created is most likely to be filled by RCEP".

Any retreat from trade and engagement by the US could also send its business partners into the arms of Beijing, which regularly offers countries soft loans to encourage deals and has urged its companies to expand overseas and compete directly with foreign firms.
Lu also declined to go into details whether the
consultation process required that Trump should make such a statement.
"We will not make comment on hypothetical questions. As for One China policy," he said, adding that ever since China and the US established diplomatic relations it served as the basis for the relationship.
He also skirted questions whether two sides discussed the disputed South China Sea over which Trump and his administration officials made strong comments, saying that Chinese naval ships should be stopped from accessing the artificial islands.

Nor he confirmed any talks on Trumps assertion earlier to hike tariffs on Chinese goods and allegations of China indulging in currency manipulation.
The Chinese statement said Trump and Xii their first phone conversation pledged to boost win-win cooperation in a variety of areas and develop a constructive China-US relationship.
Xi congratulated Trump on being inaugurated as US President and thanked him for sending a letter on Wednesday to extend his holiday greetings to the Chinese people, who are celebrating the Chinese Lunar New Year -- the Year of the Rooster -- and the upcoming Lantern Festival.
Xi said he greatly appreciated Trump's willingness to expand China-US cooperation and develop a constructive bilateral relationship that will benefit the two countries and the international community.

China and the US have maintained close communication on issues of common concern since Trump's inauguration, Xi noted, saying that the necessity and urgency of strengthening China-US cooperation is further increased in the face of the current complicated international situation and various challenges.
The development of China and the US can complement each other and promote each other, and the two countries are totally capable of becoming good cooperative partners, he said.
Xi said that building a sound China-US relationship is in the fundamental interests of the two peoples, and it is also the responsibility China and the United States need to assume as the world's major countries.

China is ready to boost mutually beneficial cooperation with the US in various fields such as trade and economy, investment, science and technology, energy, culture and infrastructure, he said.
Trump expressed his satisfaction with the close communication the two sides have maintained since he took office and admiration toward the Chinese people for the historic accomplishment they have achieved in developing their country, it said.
Developing US-China ties has won wide support from the US people, Trump said, adding that the two countries, as cooperative partners, can make joint efforts to help the bilateral relationship reach an unprecedented level.
The US is committed to enhancing win-win cooperation with China in economy, trade, investment and international affairs, Trump said, it said.