President-elect Donald Trump has fueled greater uncertainty in U.S.-China ties after he said Washington did not necessarily have to adhere to the "One China" policy, setting off a debate on his strategy for the world's two largest economies.
"In the case of China and Taiwan, he is attempting to say that it's not business as usual. He believes that under both President Barack Obama and his predecessor George W. Bush, America didn't stand up to China and he intends in all kinds of ways to do just that," said Patrick Basham, director of Washington D.C.-based think tank, Democracy Institute.
"One of the things he wants to do is to put China on the back foot and not be quite sure what America's response will be to any given act or statement from the Chinese," Basham told CNBC's "Squawk Box".
It's a highly risky strategy, but potentially offers high rewards, Basham added.
"Either this brilliant bit of negotiating confuses China early on and then when you sit down, you are very conciliatory and you come to the deal you want to, or you have an inexperienced team that's unsure about the nuances of China policy and they put Beijing in a very uncomfortable situation which Beijing has to escalate," concurred JP Morgan's chief Asian and EM Strategist, Adrian Mowat.
"This "One China" principle is a core policy in China, it's not a negotiating point," Mowat said.