U.S. President Barack Obama said on Friday it was fine for President-elect Donald Trump to review Washington's "one-China" policy toward Taiwan, but he cautioned that a shift could lead to significant consequences in the U.S. relationship with Beijing.

"For China, the issue of Taiwan is as important as anything on their docket," Obama told a news conference. "The idea of one China is at the heart of their conception as a nation and so if you are going to upend this understanding, you have to have thought through what . . . the consequences are."

China lodged a diplomatic protest earlier this month after Trump, a Republican, spoke by phone with President Tsai Ing-wen of Taiwan.