Speaking in a Fox News interview on Wednesday, White House (WH) Economic Adviser Larry Kudlow said that the trade deal with China is 'still engaged'.
US President Donald Trump is putting China on notice for Hong Kong misdeeds, Kudlow added.
Late Tuesday, President Trump signed legislation and an executive order to hold China accountable for its actions against Hong Kong.
In response to the US’ move, China announced that it would implement sanctions on US officials and entity over the Hong Kong issue.
Market reaction
The Asian traders are ignoring the escalating US-China tensions, as the mood remains lifted by the coronavirus vaccine success.
AUD/USD is off the five-week highs but trades with sizeable gains near 0.7000 while S&P 500 futures rise 0.70% so far.
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