Last week he seemed to be attempting to mend fences, appointing Iowa governor Terry Branstad, “ an old friend of the Chinese people ” according to Beijing officials, as his ambassador to China. But such a signal has not been enough to head off worries of a looming trade war between China and the US that would send shockwaves across the globe. “The initial signs are not good,” said Minxin Pei, professor of government at Claremont McKenna College in California and author of the book China’s Crony Capitalism. The US has recognised Taiwan as part of China since 1979 and its status is “non-negotiable”, said Pei. Branstad is an interesting pick and “shows a gesture that he wants to keep the relationship on an even keel”. But Pei said descriptions of Branstad as a longtime friend of Chinese leader Xi Jinpin were overblown. “That’s a very American way of describing friendship. Very few Chinese leaders have longtime friends,” he said. “What China really values in an ambassador is not his relationship with them but his relationship with the White House.” Those doing business with the two trading powers will have a lot invested in the pro-trade Branstad’s powers of persuasion. Academic studies have already shown the consequences of political spats with Beijing.
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