In latest China jab, US drafts list of 89 firms with military ties – Reuters

Early Monday, Reuters came out with the news suggesting the blacklisting of 89 Chinese aerospace and other companies by the Trump administration, as per the list seen by the reporter.

The news mentions that the list is included in a draft rule that identifies Chinese and Russian companies the US considers “military end-users,” a designation that means US suppliers must seek licenses to sell a broad swath of commercially available items to them.

The piece also says, “According to the rule, applications for such licenses are more likely to be denied than granted.”

FX implications

Although neither the US Commerce Department nor the Chinese Foreign Ministry was up for comments, headlines like his weigh on the market’s risk-tone sentiment. Though, the latest optimism concerning the coronavirus (COVID-19) vaccine seems to help S&P 500 Futures and Asia-Pacific stocks to print mild gains by press time.