CNH Slips Briefly on EU Trade Curbs Report
The European Union are proposing the first trade curbs on Chinese firms over the Russian war, according to Bloomberg.
Highlights from the piece:
- The European Union has proposed new trade restrictions on about two dozen firms, including three based in China, accused of supporting Russia’s war efforts in Ukraine.
- If adopted, it would be the first time the EU has imposed restrictions on companies in mainland China since Russia invaded Ukraine. The list also includes companies in Hong Kong, Serbia, India and Turkey, according to a draft of the proposal seen by Bloomberg.
- The EU had previously proposed listing several Chinese firms but those proposals were dropped following resistance from some member states and after Beijing provided assurances.
Minor, but notable reaction in USD/CNH on that headline - rate briefly trades up to 7.2189 before reversing the move - as the report notes the proposals on these trade measures had been made already, but looks as if they've taken a step toward becoming a reality here.