FIRST AIRED: December 5, 2016

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Transcript

00:00:02
>> He might be new to the game, but Donald Trump already seems to be rewriting the rules when it comes to China-US ties. Just days after his controversial call with Taiwan's leader last week, the President-Elect took to Twitter, slamming Beijing over currency manipulation, trade, and its, quote, massive military complex in the South China Sea, signaling a new hard line approach to the world's other superpower.
00:00:26
Reuters John Ruege explains how China is taking it all.>> The Chinese government's response has been very muted. Today there were two editorials in English language papers here in China that were basically saying the Trump camp is just showing its inexperience by having accepted this call from Taiwan.
00:00:43
So, they're really soft-pedalling it with Trump, and it appears at this stage that they may be trying to avoid antagonizing him before he becomes president.>> China may be playing it safe with Trump, but Taiwan is another question, state media on Monday publishing an opinion piece looking at the different ways Beijing could punish Taipei for the call.
00:01:03
>> One was stealing away some of Taiwan's remaining diplomatic allies. Taiwan has very few diplomatic allies, and if you take a few away, that would be a blow to their diplomatic standing on the world stage. The second is to beef up its military posture with regard to Taiwan.
00:01:17
The third possibility is that, in the past, when the government in Beijing has been unhappy with developments in Taiwan politically, they've staged military exercises, that's always a possibility.>> Experts say Taiwan is the hot button political issue for China. Some warning that while Trump's actions might kick up waves today, they could potentially set off a storm once he's sworn in as president.