US condemns 'provocative' Chinese activities near Taiwan, USTR Tai’s phase 1 deal comments eyed

As China sends record number of warplanes towards Taiwan, the US urged to stop its "provocative" military activities near Taiwan, after the island scrambled jets to warn away close to 100 Chinese military aircraft entering its air defense zone over three days, per Reuters.

The piece quotes State Department spokesperson Ned Price  saying, "The United States is very concerned by the People's Republic of China's provocative military activity near Taiwan, which is destabilizing, risks miscalculations, and undermines regional peace and stability."

Reuters added, “China has stepped up military and political pressure to try to force Taiwan to accept Chinese sovereignty.”

On a different page, CNBC relies on anonymous sources to say that US Trade Representative Katherine Tai will announce that China hasn’t complied with the phase one trade deal during her speech on Monday.

“USTR is evaluating potential actions against China for its non-compliance, including possible additional tariffs,” added the source per CNBC.

Market implications

Fresh fears concerning the US-China relations should weigh on the AUD/USD prices. However, an off in China and a partial holiday in Australia limit the pair’s reactions to the price-negative news.

Read: AUD/USD stays on the way to 0.7300 as RBA, US NFP week begins