Trump win raises global economic uncertainty

U.S. Ambassador to China Max Baucus said “the world’s most important relationship” between Beijing and Washington will remain stable regardless of the outcome of the U.S. presidential election.

“Donald Trump is going to be our president”. But Trump says some us manufacturers have moved jobs to Mexico, so he wants to impose steep tariffs on imported goods from that country.

“As such, Trump carries less baggage than we see elsewhere in Asia”, said David Black, a pollster at Blackbox Research, which helped conduct the survey put out by the South China Morning Post.

Beijing tends to prefer incumbent party successors with consistent policy lines.

Logan says he expects a Trump presidency to lead to “lower taxes, higher deficits, restrictions on trade and the global flow of capital, and potentially a sizable reduction in the labor force” brought about by the mass deportation of illegal immigrants.

But the initial market reactions suggest the depth of discomfort and uncertainty with which business leaders and investors view Trump. Just hours after he was declared the victor of the messy election and the next US President, a Chinese newspaper that is a mouthpiece of the country’s ruling party put out an editorial threatening Trump with “countermeasures” if he messes around with China-US trade.

Analysts fear that criticism could lead to Trump and the Republican Congress pushing through legislation that would undermine the independence of the central bank.

“The good news for China is that a Trump presidency will most likely mean the end of the Trans Pacific Partnership, a regional free trade grouping that Beijing was excluded from and has yet to be finalized”, he said.

“Any type of protectionist policy pursued will be a double-edged sword”, said Ruan Zongze, a former Chinese diplomat now with the China Institute of International Studies, a think-tank affiliated with the Foreign Ministry. “In the next couple of weeks, we will get some better idea of the transition of candidate Trump to President Trump”, Colley said.

Professor Xie Tao said that would be a godsend for China. He promised penalties for USA companies that offshore factory jobs.

“I think that he must take some actions that are not beneficial for China. but I think it’s a good chance for both China and America to build a new relationship”, she said. His much touted business experience will in some form penetrate future USA foreign policy.

At the same time, Chinese Vice President Li Yuanchao sent a message to Mike Pence, congratulating him on becoming the US vice president-elect. In May, he said: “We can’t continue to allow China to rape our country, and that’s what they’re doing”.

“If we are moving toward tariffs, global trade will likely suffer and capital flows between countries may weaken, and Mexico’s reliance on the United States could see it disproportionally affected”. “At a minimum, there will be a period of wait and see”. He noted potential for more such populist votes, with France and Germany holding general elections next year.

Trump had earlier claimed that Americans are living through the “greatest jobs theft” in the history of the world, saying U.S. companies were moving out jobs to countries like China, Mexico and Singapore.

“You just don’t know him, he’s never had a single day in office”, he said. It can make businesses and government postpone spending on new plants, infrastructure and jobs.