Trump Speaks To Xi, Will Respect 'One China' Policy

By Mike Murphy Markets MarketWatch Pulse

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 White House said in a statement late Thursday. The news was first reported by the Financial Times. 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. Before he took office, Trump had questioned the "One China" policy, saying it would be open to negotiations. But according to the White House, Trump will follow the diplomatic policy that has been the decades-long cornerstone of Sino-American relations, in which the U.S. maintains formal ties with China, not Taiwan. The call was "extremely cordial," the White House said. 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.

Continue Reading Below

Copyright © 2017 MarketWatch, Inc.