China calls Iowa governor Branstad 'old friend' after report of ambassador pick


Governor of Iowa Terry Branstad exits after meeting with U.S. President-elect Donald Trump at Trump Tower in Manhattan, New York City, U.S., December 6, 2016. REUTERS/Brendan McDermid

BEIJING/NEW YORK (Reuters) - President-elect Donald Trump will nominate Iowa Governor Terry Branstad as the next U.S. ambassador to China, choosing a longstanding friend of Beijing after rattling the world's second largest economy with tough talk on trade and a telephone call with the leader of Taiwan.

The appointment may help to ease trade tensions between the two countries, the world's two biggest agricultural producers, diplomats and trade experts said. It also suggests that Trump may be ready to take a less combative stance towards China than many expected, they said.

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