Sparks fly as U.S. orders China to close consulate in Houston

• The U.S. government has abruptly ordered China to close its consulate in Houston in an "unprecedented escalation," according to China's Foreign Ministry, in the latest sign of deteriorating ties between the world's largest economies.
• "We urge the U.S. to immediately withdraw its erroneous decision. Otherwise China will make legitimate and necessary reactions," it added, as the U.S. dollar surged against the Chinese yuan, breaking the key 7 level.
• Local police and fire officials responded to reports that documents were being burned in the courtyard of the Consulate General of China in Houston last night, according to the Houston Police Department.
• On Tuesday, the DOJ also accused two Chinese hackers of working for the government to steal terabytes of data, including coronavirus research, from Western companies across 11 nations.
• Update: U.S. State Department spokesperson Morgan Ortagus said the directive to close China’s Consulate General Houston had been made to protect American intellectual property and the private information of its citizens. Sources say China is considering the closure of the U.S. consulate in Wuhan in response.
• The iShares China Large-Cap ETF (NYSEARCA:FXI) is down 1%.
• With China shares likely volatile, dig into global ETFs with China equity exposure here.
• Dear readers: We recognize that politics often intersects with the financial news of the day, so we invite you to click here to join the separate political discussion.
• ETFs: FXI, KWEB, CQQQ, ASHR, MCHI, YINN, TDF, EWH, YANG, KBA, CAF, GXC, CHIQ, CYB, CWEB, CHIX