China has warned the United States after President Donald Trump banned US investment in 89 additional Chinese companies and reportedly sent a navy admiral to Taiwan. The moves are seen as an attempt by Trump to cement a tough-on-China legacy before leaving office on 20 January.
Multiple media outlets reported plans by the Trump administration for a series of confrontations with China ahead of President-elect Joe Biden's inauguration. Foreign policy analysts believe Trump wants to leave a legacy of being tough on China while pursuing a 'scorched earth' policy. The arrival of a two-star admiral overseeing US military intelligence in the Asia-Pacific region has not been formally confirmed, but Beijing issued threats of retaliation, considering Taiwan the most sensitive issue in China-US relations.
The US building ties with Taiwan has contributed to the historic deterioration in relations during Trump's term. Analysts say a return to engagement under Biden is unlikely, though he is not expected to drastically change course. Trump retains full presidential powers until the inauguration, and other predicted actions include expanding sanctions on Chinese entities linked to Hong Kong and Xinjiang, and further crackdowns on illegal fishing.
The investment ban, issued by executive order, targets companies owned or controlled by the Chinese military. David Dollar of the Brookings Institution called it largely symbolic, but warned Trump could take 'highly risky' measures such as cutting off big Chinese banks from the US dollar system. Natasha Kassam of the Lowy Institute said Trump is 'shoring up a legacy of having decisively shifted Washington's policy towards China' and may be trying to tie Biden's hands.
