US sanctions Chinese firm helping build military base in Cambodia – WSJ

Dhwani Mehta FXStreet

The Wall Street Journal (WSJ) carries a gated story on Wednesday, citing that the US Treasury Department imposed sanctions on a Chinese state-owned company, accusing it of helping build a military base for Beijing in Cambodia.

Further details

“The US blacklisted China’s state-owned Union Development Group (UDG).”

“The company is responsible for work on behalf of a formerly secret Chinese base for corruption allegations.”

“The action was described by officials as an effort by the Trump administration to more aggressively target companies that are helping Beijing to globally expand its military reach.”

Market implications

Markets ignore the latest US-China tussle, as they remain at the mercy of the US dollar dynamics.

The retreat in the US dollar across its main peers seems to have boded well for AUD/USD, as it refreshes highs above 0.7300.

S&P 500 futures turn positive and look to recapture 3,400 levels.

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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