President Donald Trump spoke on the phone with China’s President Xi Jinping for the first time Thursday, telling him that the United States will respect the “One China” policy, the Financial Times reported late Thursday. The move is hoped to reduce tensions between the U.S. and China. Trump drew outrage from China after talking to Taiwan’s Prime Minister Tsai Ing-wen soon after his November election victory. Trump has also railed against China’s trade and monetary policies, threatening stiff tariffs that could lead to a trade war. According to the FT report, Trump will follow the diplomatic formula that has been the decades-long cornerstone of Sino-American relations, in which the U.S. maintains formal ties with China, not Taiwan. Trump reportedly broke the ice and extended an olive branch to China earlier this week, when he wrote a Lunar New Year’s greeting to Xi.
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From:: Stock Market News