In the news: China congratulates Trump, EU imposes anti-dumping duties, local ride-sharing rules trouble Didi and investors prepare for the Shenzhen stock link

President Xi Jinping calls Trump with promise of positive ties

Chinese President Xi Jinping told U.S. president-elect Donald Trump on Monday that cooperation between the two largest economies was the “only correct choice”. The words over the phone conversation were the first effort by Beijing to bridge the divide that threatens to open up between China and the U.S. after months of aggressive anti-China rhetoric during Trump's campaign trail, on which he threatened to brand China a currency manipulator, impose a 45% tariff on Chinese imports and abandon the Paris climate change agreement that President Barack Obama and President Xi jointly ratified in September. Trump's advisors have been playing down fears over trade tensions since the election, and both sides have agreed to meet soon. One economist estimated during the campaign that the suggested 45% tariff would decrease China's exports to the U.S. by 87%—or $420 billion—which would deal a 4.8% blow to China's GDP over time. China could fight back through U.S. litigation or the World Trade Organization (WTO) dispute panel, or even respond by targeting specific U.S. companies and goods. Such moves potentially harm American consumers as well, as they would trigger a rise in prices on goods from clothing to basic household items. The state-run Global Times wrote: “A batch of Boeing orders will be replaced by Airbus. U.S. auto and iPhone sales in China will suffer a setback, and U.S. soybean and maize imports will be halted. China can also limit the number of Chinese students studying in the U.S.” Also, Trump's proposal to kill the Trans-Pacific Partnership, an Obama-led global trade deal that excluded China, would create room for China to pursue its own Asia-wide pact. Needless to say, having the two agree on key issues more than not would be better for business in both markets.