It is hard not to notice the increasingly hostile turn US and China relations have taken of late. President Trump’s UN speech accused China of meddling in US election, last Thursday Vice President Pence’s speech on the major threat of China to US security and a day later the US Department of Defence released its Assessment Report on strengthening the military with significant mentions of China. The report also incorporated China’s industrial policy as a security threat to the US. The increase in rhetoric suggests that China-US trade and FX policies will likely come under particular focus in coming weeks and months.

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