THE US’s stance towards China, amid heightened tensions following a move by the Trump administration viewed as effectively blocking Huawei products from being used in US networks, may be a “major mistake”, a heavyweight investor has warned.

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James Anderson, who manages the £8 billion Scottish Mortgage Investment Trust, said: “I suppose we have regarded the relationship between China and America as likely to be one of the major underlying issues of the next 10 to 15 years at the very least.

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“We would think it was much more likely that this is a major mistake for America, rather than America can bust China.”

He gave his view, in the context of America-China relations amid the Huawei controversy, that the US attitude “is being driven by [the] east coast military, intelligence establishment”.

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Mr Anderson contrasted this with “the rich deep connections” between the west coast of the US and China.