WASHINGTON—The U.S. and its allies are grappling with how to pare their economic relationships with China, attempting to limit ties in certain sectors they view as strategic while preserving broader trade and investment flows with the world’s second-largest economy.
Russia’s invasion of Ukraine changed how Western powers think about their strategy toward China, another geopolitical rival and a close partner of Moscow. Russia throttled natural-gas exports to Europe during the war, destabilizing global energy markets.