FX.co ★ US to punish China for COVID-19 outbreak

The White House openly accused China of covering information about the spread of the coronavirus. US President Donald Trump threatened China promising that such reckless behaviour would not go unpunished. The American leader is planning to impose additional tariffs on China’s imports. Moreover, the administration has already ordered the board overseeing the Thrift Savings Plan not to invest more than $4 billion into Chinese stocks. Eugene Scalia, the US Secretary of Labor, received a letter from Robert O’Brien, the National Security Advisor, and Lawrence Kudlow, the Director of the United States National Economic Council, calling on the board to keep money out of Chinese equities. According to the letter, China’s actions during the coronavirus pandemic are the main reason for the order. In response, the Chinese government declared that the country was ready for the escalation of the conflict between two world’s largest economies. Moreover, Beijing expressed willingness to break phase one of the trade agreement. However, Trump sticks to his plan and announces new punitive measures, including tariffs and even non-fulfilment of part of debt obligations.