Search ForexCrunch

We have Sino/US relations at their worst since the trade war saga began back in 2018 and now the US is increasing aerial surveillance over the South China Sea to a record level.

this is being reported as relations between Washington and Beijing deteriorate and fears grow for the safety of Taiwan.

The Times runs the story and explains:

Spy planes from the US navy, air force and army are involved in an apparent three-pronged drive to track Chinese submarines and monitor activity by the People’s Liberation Army (PLA), which has redoubled training for operations aimed at Taiwan.

In Beijing, procurement documents from the China State Shipbuilding Corporation have revealed plans to build an amphibious assault ship ideal for island invasion. 

Market implications

The US dollar could well find a bid on escalating tensions, and the stock markets could be the trigger if something were to pop the bubble.