China Rethinks Economic Ties with 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.”

And China is considering cutting natural gas purchases from the U.S. as part of this movement, the paper said.

“The idea that China should buy large amounts of natural gas from the U.S. must be revisited,” Wang Yongzhong, a senior fellow with the Chinese Academy of Social Sciences, a governmental think tank, told the Hong Kong-based newspaper on Monday.

The move came after President Donald Trump’s latest action to choke Huawei, effectively halting its ability to buy American-made parts and components. China is now threatening to stop funding an industry that the two countries have done sizable deals in. In 2017, China agreed to fund a natural gas project in Alaska worth US$43 billion, the South China Morning Post said.

via CNBC

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