Beijing

Following Trump's Friday night interview with the WSJ, in which the president-elect suggested he would use any available leverage to realign the U.S.’s relationship with its two biggest global strategic rivals, China and Russia, Beijing responded promptly when China's foreign ministry said on Saturday that its "One China" principle was the non-negotiable political basis for China-U.S. relations, and urged all "relevant parties" in the United States to recognize the sensitivity of the Taiwan issue.

We were surprised by how contained China was this morning after yesterday's confirmation hearing of Rex Tillerson, in which the former Exxon CEO said that a failure to respond to China had allowed it to “keep pushing the envelope” in the South China Sea and added that “we’re going to have to send China a clear signal that first the island-building stops and second your access to those islands is also not going to be allowed” and that putting military assets on those islands was "akin to Russia’s taking Crimea” from Ukraine."

While Rex Tillerson's confirmation hearing as Trump's Secretary of State was for the most part uneventful, several hours into his back and forth with the Senate Foreign Relations Committee, Tillerson compared China’s actions to those of Russia in Crimea, saying a failure to respond had allowed it to “keep pushing the envelope” in the South China Sea.

While much of America was preparing to listen to Obama speak one final time, the Chinese had far less lofty ambitions, and on Wednesday morning Beijing sent a group of Chinese warships led by China's sole aircraft carrier north through the Taiwan Strait, resulting in Taiwan scrambling jets and navy ships in the latest sign of heightened tensions between China and the self-ruled Taiwan.

Beijing's pollution problem is getting worse by the day.

On Wednesday, the Chinese capital issued its highest "red fog alert" for only the second day in history, keeping highways closed in and around the city which is already under a smog alert after weeks of choking winter pollution. China's weather bureau warned of visibility of less than 50 meters in some areas, leading many airports to cancel flights.