China’s Foreign Ministry: Will impose sanctions on US entities participating in the arms sales to Taiwan
China’s Foreign Ministry announced on Monday, it will impose sanctions on the US entities involved in the arms sales to Taiwan.
Lockheed Martin, b\Boeing defense and Raytheon will be sanctioned, the Ministry said.
This comes after the US State Department last Wednesday announced it had approved the sale of 135 precision land attack missiles, associated equipment and training to Taiwan to improve its defense capabilities. The package is worth just over a billion dollars, it said in a statement. The missiles are made by Boeing.
In response, China’s Défense Ministry issued a statement on Thursday, demanding the cancellation of the sale and an end to all interactions between the US and Taiwanese militaries in order to "avoid serious repercussions for relations between China and the U.S. and their armed forces and peace and stability in the Taiwan Strait."
Market reaction
The sentiment is already soured by the rise in coronavirus cases globally, as the second wave intensifies.
The safe-haven US dollar is back in demand while the Chinese proxy, AUD/USD, drops 0.34% to flirts with session lows of 0.7104.
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.
