FIRST AIRED: December 6, 2016

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Transcript

00:00:00
>> If you promise, raise your hand, promise.>>
APPLAUSE
>> Donald Trump's new hardline on Beijing might have some conservatives cheering, but for US firms that have spent billions investing in China, it could be very bad for business. From his controversial phone call with Taiwan's leader to a string on anti-China tweets, Trump's tactics signal rocky times ahead between Washington and Beijing.
00:00:22
But Reuters Breakingviews' Pete Sweeney says this maybe precisely his strategy.>> Part of his big plans is that US is open for business and he's making most to make it more attractive for companies overseas, to repatriate to the States or set up production manufacturing in the States. So I mean, Trump doesn't look like he's that concerned politically about the fallout for American firms who are investing in China given that he wants them to invest in the States, instead.
00:00:48
>> US firms are nervous that if Trump rails Chinese citizens by cozying up to Taiwan, for example, they could take it out on American businesses by boycotting or even attacking them, the way mobs attacked Japanese companies in 2012. Analysts say this is a nightmare scenario for companies like McDonald's, Ford, and Apple, all with big investments in China.
00:01:10
But there may be an upside for sectors that Beijing tightly controls like pharmaceuticals, software, or financial services.>> I did speak with one investment banker, American investment banker, who did a deal that finally this was reopening the door for playing hardball with Chinese negotiators. So for somebody in financial services where you've been largely, had very difficult penetrating the China market, obviously anything that can break up the current status quo is probably a positive.
00:01:41
>> Trump might believe that the more US firms get squeezed, the faster they'll get back to the US. But analysts say that in China, it's not that simple, and that Beijing could fight their exit every step of the way.