US China Relations at Risk in Taiwan Deal

US China Relations at Risk in Taiwan Deal

Earlier on Thursday, China protested to Washington after a US Senate committee approved a bill calling for the resumption of port visits to Taiwan by the US Navy for the first time since 1979.

In December, breaking the diplomatic embargo between Washington and Taipei, President Donald Trump accepted a congratulatory phone call from Taiwan’s leader, Tsai Ing-wen.

It was the first contact between a leader of Taiwan and an incumbent or incoming US president in almost four decades, and caused a diplomatic uproar.

However, Trump agreed to honor the “one China” policy, and hosted Chinese President Xi Jinping at his Florida resort in April.

The Trump administration has since demanded that Beijing put more pressure on North Korea to rein in its nuclear and missile programs.

Also on Thursday, Washington announced sanctions against a Chinese bank for allegedly laundering money for Pyongyang, and against two Chinese citizens as well as a shipping company for allegedly helping North Korea’s nuclear and missile programs.

U.S. arms sales to Taiwan and sanctions against some Chinese entities and individuals undermine the mutual confidence between China and the United States, Chinese Ambassador to the United States Cui Tiankai said here Thursday.

“And all these actions – sanctions against Chinese companies and especially arms sales to Taiwan – will certainly undermine the mutual confidence between the two sides and runs counter to the spirit of the Mar-a-Lago summit,” Cui told reporters.

Stressing that China is always firmly opposed to arms sales to Taiwan, which, Cui said, violate the one-China principle as well as the three joint communiques between China and the United States.
On the Korean Peninsula nuclear issue, China is implementing UN Security Council resolutions “fully and effectively,” said Cui.

“If there is any Chinese entity or individual that violates UN sanctions, we’ll conduct our investigation and we’ll pursue the case in the court with the Chinese law,” said Cui.

“But we are against this kind of so-called long-arm jurisdiction by the U.S. side,” added Cui.

The U.S. State Department confirmed on Thursday that it had formally notified the U.S. Congress of arms sales to Taiwan valued about 1.42 billion U.S. dollars.

U.S. Treasury Secretary Steven Mnuchin on Thursday also announced sanctions against a Chinese bank, a Chinese company and two Chinese individuals for allegedly helping the Democratic People’s Republic of Korea.

The Trump administration plans to sell Taiwan just over $1.4 billion in weapons, while China’s ambassador to the US has reportedly said the deal goes against the “spirit” of talks between President Donald Trump and Chinese President Xi Jinping.

“And all these actions – sanctions against Chinese companies and especially arms sales to Taiwan – will certainly undermine the mutual confidence between the two sides and runs counter to the spirit of the Mar-a-Lago summit,” said Ambassador Cui Tiankai, speaking to reporters at an embassy reception in Washington.

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S. Jack Heffernan Ph.D. Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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