Lawmakers pressure USTR Lighthizer to strike a formal trade deal with Taiwan to reduce reliance on China – SCMP
|Early Friday morning in Asia, the South China Morning Post (SCMP) came out with the news suggesting further Sino-American tension. The piece relies on the letter signed by 50 Senators from America that urges US Trade Representative Robert Lighthizer to build a close trade tie with Taipei
There are two causes for the push indirectly signaled in the piece. One is to gradually step back from China and the other is to help Taiwan become independent by highlighting it as a viable partner that is open for business.
Market implications
The US policymakers’ intentions behind the push are suggesting a strong dislike for Beijing and can weigh on the market’s risk-tone sentiment. However, China is enjoying the Golden Week holidays and hence the market reaction to the news is minimal. That said, S&P 500 Futures drop around two points to start the US Nonfarm Payrolls (NFP) day.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.