China plans to boost broad chip sector support to counter Trump restrictions – Bloomberg

Dhwani Mehta FXStreet

China is reportedly planning a sweeping set of policy changes to its 3^rd generation semiconductor industry for the next five years through to 2025, Bloomberg reports, citing people with knowledge of the matter.

A suite of measures to bolster research, education and financing for the industry is set to be proposed to top leaders next month as part of the country's 5-year plan, the source noted.

This comes in response to US Secretary of State Mike Pompeo’s announcement of several restrictions over Chinese diplomats’ in the US.

The Trump administration noted: “Under the new restrictions, senior Chinese diplomats will need approval from the State Department to visit American university campuses and meet with local government officials.”

Market reaction

As the dollar recovery extends into a third straight day on Thursday, the AUD/USD pair is under renewed selling pressure and looks to test the 0.7300 support.

The US-Sino tensions will only add to the downside bias in the aussie. Meanwhile, the S&P 500 futures trade with modest losses around 3,570.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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