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The US Government has reduced the maximum validity length of the B1/B2 non-immigrant business and tourist visas for China’s ruling Communist Party and their families in a bid to protect the nation from malign influence.

Key quotes/points (Souce: ABC News)

China says the visa changes are an “escalated form of political oppression.”

The US officials claim that Chinese agents had already been targeting the incoming Biden administration.

Implications for market

The Sino-US tensions have historically boosted demand for safe havens such as the dollar. However, the narrative of potential coronavirus vaccines leading to swift global economic recovery is currently dominating the market sentiment and keeping the risk assets better bid.