12:12 GMT04 August 2020
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    In his address to the American state governors, Pompeo claimed China was aiming to gain an advantage over the United States not just at the federal level, but also at the state level and the local level.

    US Secretary of State Mike Pompeo has called on the US State governors to "adopt a cautious mindset" when it comes to doing business with China.

    "When it comes to doing business, I'm asking you to adopt a cautious mindset. In the words of President Reagan, when you are approached for introduction or a connection to a deal, 'trust but verify'", Pompeo said at the National Governors Association 2020 Winter Meeting on Saturday.

    Pompeo also called it "not just a federal issue".

    Pompeo's words came just after US President Donald Trump praised the US-China relationship in his State of the Union address on Wednesday, saying it was probably the best in its history.

    Recently, Washington has also criticised the UK's decision to grant Chinese telecommunications giant Huawei access to its 5G mobile networks.

    On 15 January, the US and China signed the Phase One Trade deal, considered a much-hoped-for first step to put an end to the trade war between the two nations. The deal stipulates China buying about $200 billion worth of US goods in four industries over the next two years.

    The trade war erupted in June 2018, when the US imposed the first round of tariffs on Chinese imports, prompting Beijing to respond in kind. Tariffs were slapped on tens of billions of dollars worth of Chinese goods, including clothes, toys, phones, and laptops.

    Tags:
    trade, economics, business, Donald Trump, Mike Pompeo, China, United States
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