British, US China hawks call for “Nato for trade” against Beijing – SCMP
Early Monday morning in Asia, the South China Morning Post (SCMP) published signals to escalate West versus China tussles with its latest news. The Chinese daily said, “Hawkish British politicians and an American industrial lobby group have called on Western allies to form a ‘Nato for trade’ to counter China’s ‘weaponization of policy tools to punish any nation that does not kowtow to Beijing’.”
“The proposal is for democratic nations to create a trade-based alliance along the lines of the North Atlantic military grouping formed to counter the Soviet Union in 1949,” added SCMP.
The news cites a report on the proposal from hardline British and US entities to mention the examples of how such an alliance may work. The group consists of British Conservative members of parliament, and the Information Technology and Innovation Foundation, a science and technology policy think tank with links to the US government and big tech firms, per SCMP.
It’s worth noting that such lines like “backers of the proposed Democracies’ Alliance Treaty Organisation (Dato) advocate retaliation in response to coercive measures by China against any member” can weigh on the market sentiment amid a quiet session.
FX implications
Despite challenging news for the risk appetite, S&P 500 Futures wobble around record top flashed the previous day amid a lack of major data/events.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
