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In response, China warned that the "one China" policy was absolutely "non-negotiable" and any change in the status quo could "badly affect" US-China relations.

Chinese foreign ministry spokesman Lu Kang said a call between President Xi Jinping and his U.S. counterpart Donald Trump was "an arrangement that had been previously agreed", and officials from both countries would maintain close contact.

On Saturday, the overseas edition of the ruling Communist Party's People's Daily placed a picture on its front page of Chinese warships about to embark on a new round of drills in the South China Sea, right next to an upbeat commentary about the Xi-Trump call.

The White House released a statement after the FT reported the call between the two men, saying that Mr Trump had agreed "at the request of President Xi" to honour the "one China" policy.

Government departments are also asking Chinese companies that have large trade volumes with the U.S.to evaluate the impact should the USA label the nation a currency manipulator.

While Trump honored the policy, statements from both sides did not mention the other contentious issues of trade and the South China Sea or reports of a near-miss between Chinese and US aircrafts in the disputed territory.

The policybegan in 1979, when the United States under President Jimmy Carter first established a diplomatic relationship with China and severed its then-official relationship with Taiwan.

On the two-way relationship, Xi said "the necessity and urgency is on the rise" for the two countries to reinforce cooperation, and they are fully capable of becoming a great partner for the other.

Abe made a pitch to Trump for Japanese high-speed rail technology
Abe made a pitch to Trump for Japanese high-speed rail technology

In the early days after Donald Trump's historic election victory he accepted a congratulatory phone call from Taiwanese president Tsai Ing-wen.

In addition to Taiwan, Trump also ruffled feathers in China by threatening trade sanctions and accusing the communist country of manipulating its currency. "This will now pave the way for the engagement of the US and Chinese governments on a wide range of issues".

"Effectively tackling China-US ties serves the very interest of the two peoples and is an expected duty shouldered by China and the US, the two major countries, for the world", Xi said. The leaders had sent in their invite to visit their respective countries.

Tsai Ing-wen, Taiwan's president, met with senator Ted Cruz and Greg Abbott, governor of Texas, as she stopped off in the U.S. on a trip to Central America on Sunday. In practice, Taiwan has a US Ambassador in everything but name, and an embassy that is simply listed as not an embassy for the sake of the policy.

"Everything is under negotiation, including 'one China, '" hetold the Wall Street Journal.

The statement came shortly after the publication of a New York Times report that described China as "stung" by Trump's call with Taiwan.

It is also noteworthy that Chinese direct investment accumulated in the United States economy since 2000 exceeds 100 billion dollars, and that exchanges between peoples between both nations have continued to strengthen, so there is no reason to bet on a constructive bilateral relationship.