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Robert O’Brien, the US national security adviser, steps up the pressure as UK nears decision on China’s Huawei says the Financial Times (FT).

Key quotes

“Any UK government decision to allow the Chinese telecoms company to participate in the country’s ultrafast 5G networks risked giving the Chinese Communist party access to the ‘most intimate’ details of British citizens and the ability to steal national secrets.”

“It is somewhat shocking to us that folks in the UK would look at Huawei as some sort of a commercial decision. 5G is a national security decision.”

“One reason Britain faces such pressure is that it is one of the ‘Five Eyes’ partners “” with the US, Canada, Australia and New Zealand “” that share critical intelligence.”

“While the German elites may have been happy to do a deal with China or Huawei, German citizens are starting to revolt.”

FX implications

While Christmas holidays at major trading centers have shown a limited reaction to the news, such statements suggest the US-China rift when compared with the recent statements from China. As a result, the market’s rush to risk safety should gradually be magnified on this basis.