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Trump threat to 'decouple' US and China hits trade, investment reality

White House trade adviser Peter Navarro gave Asian markets a scare on Monday night by telling Fox News Channel that the U.S.-China trade deal was "over"

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US-China trade is actually increasing, after the coronavirus caused major drops shortly after the trade deal was signed in January

David Lawder | Reuters Washington

Conflicting talk from Trump administration officials about "decoupling" the US economy from China is running into a challenging reality: Chinese imports of US goods are rising, investment by American companies into China continues, and markets are wary of separating the world's biggest economies.

White House trade adviser Peter Navarro gave Asian markets a scare on Monday night by telling Fox News Channel that the US-China trade deal was "over." US stock futures dropped, the dollar rose, and volatility indices climbed.

Navarro quickly backtracked on Monday night, saying he was referring to a lack of trust between the United States and China over the