The Times: UK seeks alliance to avoid reliance on Chinese tech – Reuters

Anil Panchal FXStreet

Amid raw between China and the UK over the Tory government’s U-turn on Huawei, The Times came out with the news suggesting further hardships for the Asian major’s tech company.

Key quotes

The UK is pursuing forming an alliance of 10 democracies to create an alternative pool of suppliers of 5G equipment and other technologies to avoid relying on China.

The British government has approached Washington about a ‘D10’ club of democratic partners, based on G7 plus Australia, South Korea and India.

Last week, the Daily Telegraph reported that Prime Minister Boris Johnson was planning to reduce Chinese telecoms equipment maker Huawei Technologies Co Ltd’s involvement in Britain’s 5G network.

FX implications

The news is likely to add strain between the UK and Chinese relations, which in turn could weigh on the market’s risk-tone. However, no major reaction could be witnessed on the immediate release of the news around early Friday morning in Asia.

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.

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