Bill Gates wary of Trump causing 'tit-for-tat' tariff conflict with China

Microsoft founder Bill Gates has said that he hopes US president-elect Donald Trump thinks carefully about how to approach trade relations with China, warning that a "tit-for-tat" conflict would not benefit either side.

Trump repeatedly stated during his successful election campaign that he would rip up trade deals that were unfavourable to the US, including those which included China. He claimed that jobs were being lost in the US to countries like China, and would impose taxes on companies that relocated there.

Speaking to CNBC on Tuesday, billionaire Gates said it was unlikely that Trump would engage in such a trade war.

"I feel sure that he and the team he brings in around them, even as they tune things, they won't want the 'lose-lose' that you would get if you start to get large tariff walls," Gates commented.

He also used the example of the nuclear energy sector to typify the no-win situation that such a trade war would place on both the US and Asian markets.

"If they (the US) want a renaissance they have to be able to sell into Asia, because that's where the vast majority of those nuclear builds are. Here in the US because of the low price of natural gas, the complexity of permitting, the speed of construction...nuclear is going to have a tough time competing."

Trump has been busy on Tuesday making key choices as to how his economic and foreign policy will be formed, with the appointments of Gary Cohn and Rex Tillerson to the positions of head of the National Economic Council and Secretary of State respectively, subject to Senate approval.