Yesterday, a puzzling headline hit the tape that felt incongruous to us because instead of retaliating against the White House for a new ban on Chinese carriers, Beijing instead appeared to turn the other cheek by allowing foreign carriers to return to China's skies.
Now we know why.
With the Dow up 1000 points and the Trump Administration eager to pump stocks even further with news of a deescalation, however tenuous, the Trump administration announced on Friday that it had scrapped plans to ban Chinese carriers from the US; instead, the DOT will allow Chinese airlines to re-start two flights per week.
The DOT said the limitations are there "to restore a competitive balance and fair and equal opportunity among U.S. and Chinese air carriers in the scheduled passenger service marketplace."
Meanwhile, Larry Kudlow said during an interview Friday that there's "more to come" from the White House regarding China and its crackdown on Hong Kong. Kudlow added that the US is "engaging" with China on the 'Phase 1' trade deal.