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The US is picking up the stick against China over trade and the tech even amid coronavirus and the same could lead to tough phase-two talks said China’s Global Times during early Friday.

Key quotes

Washington’s threatening of more restrictions on trade in technologies with China and more tariffs on Chinese products might have been a familiar gambit it has deployed before extracting more concessions from Beijing in phase two trade talks, but, in a broader sense, they are part of certain US elements’ ideologically-driven attempt to contain China, Chinese analysts said on Thursday. 

Nonetheless, such ill attempts while escalating tensions would not force China to give any ground on core issues, let alone to a downfall, analysts noted.

Since the epidemic in China gained national attention in mid-January, the US has moved to ban foreign nationals with travel history to the Chinese mainland in the past 14 days, charged Chinese telecom firm Huawei with racketeering, finalized a new rule that allows tariffs on products from China and other countries that it deems to have undervalued their currencies, and removed China from its list of “developing” nations that paves the way for more duties on Chinese goods. 

FX implications

Such news provides an additional boost to the broad risk-off. As a result, Gold prices rally to a fresh seven-year high of $1,626.53 before pulling back to $1,626 by the press time.