According to a gated story carried by the Financial Times (FT) on Wednesday, “Boris Johnson’s government is drawing up a strategy to reduce the UK’s reliance on China for key imported goods.”
This comes as the UK ministers take note that a combination of the coronavirus pandemic and Brexit will force a big shake-up of the country’s supply chains.
“Those working on the project, which is overseen by foreign secretary Dominic Raab, stressed it was primarily about strengthening the country’s trade links in the wake of coronavirus but would also lead to the production of some critical goods being brought back to the UK, after the pandemic exposed the UK’s reliance on imports,” FT reported.
Market reaction
The above headlines are likely to further deteriorate the UK-Sino relations, which are already at loose-ends over the 5G and Huawei issue. Also, the UK calling for the coronavirus inquiry on China remains a concern.
GBP/USD keeps highs near 1.2740, as the US dollar stumbles to three-week lows across its main peers ahead of the Fed decision.
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