US-China relations off to turbulent start

Beijing

BARELY one week into office, the new US President, Donald Trump, has already lashed out at China with Beijing responding just as harshly.

Analysts say this war of words, ongoing and mounting in crescendo since the US presidential election in November, could very well escalate into a full-blown trade war.

President Trump has threatened to impose 45 per cent tariffs on all China goods into the United States and has labelled China a currency manipulator. On Monday, with Mr Trump just three days into office, the White House warned China it will defend its interests in the South China Sea and that trade must be a "two-way street".

Beijing reacted by defending its borders and saying its one-China policy, in effect touting its supremacy over Taiwan and Hong Kong, are not negotiable. A spokesperson in Beijing on Monday said China's stance on its sovereignty issues is clear and s…