Trump agrees to back 'One China' policy during call with Chinese premier
Updated : 13:09
US President Donald Trump has agreed to support the 'One China' policy after doubts about his stance emanated from a phone call with the president of Taiwan in December.
Trump spoke with Chinese president Xi Jinping on Thursday, according to the White House, in which he agreed to acknowledge the long-standing policy of the US towards China.
The Chinese administration lodged an official complaint after Trump spoke with the president of Taiwan, but the situation appears to have cooled following the first conversation between the leaders of the two superpowers since his inauguration on 20 January.
"President Trump agreed, at the request of President Xi, to honor our 'one China' policy," the statement from the White House said. "Representatives of the United States and China will engage in discussions and negotiations on various issues of mutual interest."
A statement was also released by the Chinese government in which it referred to the US and China as "cooperative partners". Trump had previously been critical of China and their trade policies, sparking fears of a large scale trade confrontation.
"I believe that the United States and China are cooperative partners, and through joint efforts we can push bilateral relations to a historic new high," Xi said in the statement.
"The development of China and the United States absolutely can complement each other and advance together. Both sides absolutely can become very good cooperative partners," the statement added.
Investors have been watching the development of Trump's relationship with China closely, and the softening of his stance towards the "One China" issue may indicate a larger attempt to warm to the country, according to CMC Markets analyst Michael Hewson.
"We may have witnessed a softening of the "bull in a china shop" type of rhetoric towards China after reports that President Trump had spoken to Chinese President Xi and said that he would stand by the “one China” policy that had been the baseline for US foreign policy for many years," Hewson said.