China to Trump: "The Gloves Are Off!" China Decides to stand firm with its One China policy and demonstrate to President-elect Trump that his contact with Taiwan simply will not be tolerated. However, China's looming housing bubble presents very real challenges that the government needs to acknowledge before treating Trump's recognition of Taiwan as an international incident. No doubt any measures that they do take will come in the form of seeking retribution on Taiwan for overstepping its bounds. Especially since China poses no serious threat, militarily, to the United States, and it knows it. Furthermore it does not want to damage the $500 billion+ in annual trade between the two countries. So this is clearly posturing aimed at scaring Taiwan back into line. My guess is Trump is probing for weaknesses in a business-like fashion, and is taking notes and feels largely unaffected.
Beijing to Trump: http://www.reuters.com/article/us-china-usa-trump-idUSKBN15001X
Article Housing Bubble: http://asia.nikkei.com/magazine/Agents-of-Change-in-2017/Viewpoints/Editorial-Beijing-must-address-the-root-causes-of-China-s-housing-bubble
Video Housing Bubble: https://youtu.be/BcyYyyaPz84