Beijing orders state offices to replace foreign PCs and software – FT

Having witnessed a surge in Chinese imports data despite an on-going tussle with the United States (US), Beijing seems to sound strong at the phase-one negotiation table. The Financial Times (FT) recently ran a story highlighting the fact that the Chinese Administration orders all government offices and public institutions to remove foreign personal computer (PC) equipment and software within three years.

Key quotes

China's administration has ordered all government offices and public institutions to remove foreign computer equipment and software within three years.

Targets Chinese buyers to switch to domestic technology vendors.

FX implications

Amid the initial trading hours during the Asian session, markets are yet to respond to the news. However, headlines like these signal challenge to the phase-one discussion between the US and China ahead of the scheduled December 15 tariffs and could spoil the risk sentiment. The latest readings of the US 10-year treasury yields recovered to 1.84%.