President Trump cranking up decoupling efforts from China in the final weeks of his administration.
- has signed an executive order banning Americans from investing in Chinese firms that the administration says are owned or controlled by the Chinese military
- order applies to 31 Chinese companies that it says "enable the development and modernization" of China's military and "directly threaten" US security
Report via CNN, ungated, although other media carry it also if you prefer.
---
I've said this before and at the risk of sounding like a broken record will again - Trump's administration efforts like this to take a more aggressive stance against China will, I suspect, be not a high priority for unwinding from the incoming Biden administration. This new cold war is here to stay. Biden will be more diplomatic about it, but the hard-line will remain.
In the major FX world, AUD will see a big negative impact from this. Australia is seen as a US proxy by China, an easily kicked one. If China can replace goods and services it imports from Australia with similar from elsewhere, they will. They are already moving on this.
