On Thursday evening, US President Donald Trump and Chinese President Xi Jinping (習近平) spoke for the first time since Trump’s inauguration, following a frosty period initiated by Trump’s Dec. 2 call with President Tsai Ing-wen (蔡英文). Trump’s refusal to adhere to the “one China” policy shortly after the call with Tsai was apparently the reason for Xi’s previous refusal to speak with him.
Both Beijing and the White House have released information about what transpired during the call. What finally brought about the call, at this specific time, is open to speculation, as is what was actually said and achieved in the conversation.
Surprisingly, according to the Financial Times, Trump also said he “would abide by the diplomatic formula that Beijing and Taipei agreed in 1992” — presumably a reference to the so-called “1992 consensus.” This would constitute a boon for Xi, a blow for Tsai, and a departure for the US, which has previously held no stance on it.
Whereas, on the surface, the big news was that Trump reaffirmed the “one China” formulation, a more important question is whether Trump’s refusal was an opener to negotiations, and if so, if it worked.
Firstly, Trump merely reaffirmed the US’ long-standing position. The White House statement says Trump agreed to honor the US’ “one China” policy.
The Chinese Ministry of Foreign Affairs, however, said he “pointed out that the ‘one China’ principle is the political foundation of US-China relations.”
The “one China” policy and principle are different. The US follows the former, China the latter.
Much remains the same. In written responses prior to his confirmation, US Secretary of State Rex Tillerson said: “The US commitment to Taiwan is both a legal commitment and a moral imperative.”
As for the wider situation in the Asia-Pacific region, US Secretary of Defense James Mattis has just concluded a visit to Japan, where he assured Japanese Prime Minister Shinzo Abe of the US’ commitment to their alliance.
Could Trump have lost the game of chicken to Xi?
“Everyone will be surprised at the speed with which Trump has backed down on this issue,” said Ashley Townshend, a US-China relations expert at the University of Sydney.
From what we know of Trump, he would not like the exchange to be characterized in this way. It may be that Tillerson and Mattis managed to persuade him to climb down on using adherence to the “one China” policy as a bargaining chip, counseling him against drifting further into a standoff with Beijing and taking instead a more realist approach.
It is also possible that Xi backed down first, and that Trump managed to eke out concessions over China’s island building and militarization in the South China Sea, North Korea’s nuclear weapons and missile program or exchange rate manipulation.
As for the call’s timing, it came just after Mattis confirmed the US’ commitment to helping Japan protect the Diaoyutai Islands (釣魚台) — known to the Japanese as the Senkakus and claimed by Japan, Taiwan and China — and literally hours before Abe arrived in the US. Only last week, China sent coast guard vessels to patrol waters around the islands.
It is possible, then, that the call and its concession was made at this point as the US sought to allay tensions with Beijing.
The reverse could also be true. China’s patrolling the waters around the Diaoyutai Islands was presumably a show of strength and intent, but could also be seen as a sign of weakness and uncertainty, with the US reaffirming its commitments to Japan.
The reaffirmation of the “one China” policy was a return to a longstanding stance, not a worrying departure, even though many Taiwanese were harboring hopes for a new era in US-Taiwan relations.
There are other questions to consider regarding the wider implications of the call.
The conflict in the Middle East has been disrupting financial markets, raising concerns about rising inflationary pressures and global economic growth. One market that some investors are particularly worried about has not been heavily covered in the news: the private credit market. Even before the joint US-Israeli attacks on Iran on Feb. 28, global capital markets had faced growing structural pressure — the deteriorating funding conditions in the private credit market. The private credit market is where companies borrow funds directly from nonbank financial institutions such as asset management companies, insurance companies and private lending platforms. Its popularity has risen since
On March 22, 2023, at the close of their meeting in Moscow, media microphones were allowed to record Chinese Communist Party (CCP) dictator Xi Jinping (習近平) telling Russia’s dictator Vladimir Putin, “Right now there are changes — the likes of which we haven’t seen for 100 years — and we are the ones driving these changes together.” Widely read as Xi’s oath to create a China-Russia-dominated world order, it can be considered a high point for the China-Russia-Iran-North Korea (CRINK) informal alliance, which also included the dictatorships of Venezuela and Cuba. China enables and assists Russia’s war against Ukraine and North Korea’s
An article published in the Dec. 12, 1949, edition of the Central Daily News (中央日報) bore a headline with the intimidating phrase: “You Cannot Escape.” The article was about the execution of seven “communist spies,” some say on the basis of forced confessions, at the end of the 713 Penghu Incident. Those were different times, born of political paranoia shortly after the Chinese Nationalist Party (KMT) relocated to Taiwan following defeat in China by the Chinese Communist Party (CCP). The phrase was a warning by the KMT regime to the local populace not to challenge its power or threaten national unity. The
The Iran war has exposed a fundamental vulnerability in the global energy system. The escalating confrontation between Iran, Israel and the US has begun to shake international energy markets, largely because Iran is disrupting shipping through the Strait of Hormuz. This narrow waterway carries roughly one-third of the world’s seaborne oil, making it one of the most strategically sensitive energy corridors in the world. Even the possibility of disruption has triggered sharp volatility in global oil prices. The duration and scope of the conflict remain uncertain, with senior US officials offering contradictory signals about how long military operations might continue.