President, Donald Trump. Source: AAP
The Market Online - At The Bell

Join our daily newsletter At The Bell to receive exclusive market insights

  • The U.S. has abruptly announced it will close a Chinese consulate located in Houston, amid accusations of spying
  • Workers at the consulate have since been caught burning papers, as they rush to evict the premises
  • The closure follows accusations China had been trying to hack labs in the U.S. to steal COVID-19 vaccine information
  • Two men have been indicted in relation to the crime, while China has denied any involvement

The U.S. has abruptly closed the Chinese consulate in Houston, Texas, amid accusations Beijing was spying on health authorities working to create a COVID-19 vaccine.

The closure is symptomatic of the escalating tension between the two countries, who are fighting over everything from the coronavirus, to trade issues and border disputes, as well as accusations of human rights violations.

Abrupt closure

The directive by the U.S. State Department to close the consulate was announced yesterday, the same day that the U.S. Justice Department indicted two Chinese nationals for seeking to steal coronavirus vaccine research.

“We have directed the closure of PRC Consulate General Houston in order to protect American intellectual property and Americans’ private information,” State Department Spokeswoman, Morgan Ortagus said.

The U.S. Secretary of State, Mike Pompeo, has also been highly critical of China during his recent trip to the U.K. and Denmark, where he sought commitments from world leaders to push back against Beijing.

Let it burn

Following the abrupt closure announcement, staff at the Chinese Consulate in Houston were spotted burning documents and other papers overnight, as they rushed to evacuate the building.

Local firefighters were alerted to the hazardous activity, however in a bizarre scene, they weren’t officially allowed in the building for over an hour.

By the time the firefighters did get inside, all of the barrel fires with papers inside had been extinguished.

Increasing tension

China has unilaterally condemned the consulate closure, labelling it an “outrageous and unjustified move which will sabotage China-US relations.”

“China urges the US to immediately withdraw its wrong decision, or China will definitely take a proper and necessary response,”  said Foreign Ministry Spokesman, Wang Wenbin.

Beijing has also denied having any involvement in the attempted theft of the U.S. coronavirus vaccines.

All eyes are now on China to see how they punish the U.S. for this latest move.

They recently disrupted a planned naval exercise between America and Australia, but it’s not known if the two incidents are linked, or just a sign of the wider tension between the two countries.

More From The Market Online
AI image representing commodity price trends

Waning appetites for green metals and the ‘comfortable’ safe haven of gold: Thoughts on investment and commodities

Lithium's past highs and recent lows, in addition to copper's rally and gold's strong performance are…
Two miners digging in a cave awash with gold light.

The ASX gold miners benefiting most from gleaming bullion prices

Gleaming gold prices across the globe have helped several ASX gold miners sparkle especially bright as…
Image representing economic data.

GDP grows 0.2% in June quarter, but annual growth the slowest since the 1990s

Australian GDP for the June quarter came in on-target at 0.2%, the same figure as in…
Stack of coins next to a upward curve symbolizing rising costs due to inflation

Inflation cools in the 12 months to July, with reading of 3.5%

Australia's CPI reading for the 12 months to July showed an increase by 3.5%, down from…