The trade war is forcing China to ‘rethink economic ties’ to the US
“China is exploring more drastic action as a result of its trade fight with the U.S., according to the South China Morning Post. While China is open to resuming trade talks, ‘government advisers are now highlighting the risk of sourcing critical supplies from an increasingly hostile US…and are exploring ways for the country to cut its exposure to the US,’ the paper said, citing Chinese researchers. The article was titled, ‘Donald Trump’s trade war and Huawei ban push China to rethink economic ties with US.’”
USAGOLD note: The more this kind of thinking becomes entrenched on both sides, the deeper the roots of the trade war are likely to sink with economic consequences for both countries – and it follows from there for financial markets here, there and elsewhere.