Update(1050ET): Fox Business' Edward Lawrence tweeted a statement from the Trump administration regarding the new order to ban Chinese passenger planes from the US:
"The Department will continue to engage our Chinese counterparts so both U.S. and Chinese carriers can fully exercise their bilateral rights," the statement read.
It continued: "In the meantime, we will allow Chinese carriers to operate the same number of scheduled passenger flights as the Chinese government allows ours."
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Update (1009ET): A statement from the Transportation Department confirms Wednesday morning that it will suspend Chinese passenger flights to the US starting June 16.
"Our overriding goal is not the perpetuation of this situation, but rather an improved environment wherein the carriers of both parties will be able to exercise fully their bilateral rights," said the Department of Transportation's order. "Should the CAAC [Civil Aviation Administration of China] adjust its policies to bring about the necessary improved situation for U.S. carriers, the Department is fully prepared to revisit the action it has announced in this order."
Reuters' David Shepardson tweeted the "Transportation Department filing confirms" the Reuters report.
At the moment, E-mini S&P500 futures are ignoring headlines...
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As tensions soar between the US and China, Reuters reports that in the next escalation, President Trump's administration is set to bar Chinese passenger airlines from flying to the US starting in mid-June as geopolitical tensions continue to flare up between the two nations.
The move by the Trump administration comes in response to China refusing to allow US airlines to resume passenger service in the country. The Trump administration claimed last month that the Chinese government has made it near impossible for US carriers to operate in the country.
The new order banning all Chinese passenger airplanes from US flights is expected to take effect on June 16. More details will be announced in the afternoon hours on Wednesday.
Offshore Yuan has slumped to 7.1253 on the Reuters report.
Relations between both countries has taken a turn for the worse following the virus pandemic, a breakdown in the trade deal, the fate of Hong Kong, continued decoupling of financial markets, and technology war.