Trump signs Hong Kong bills; Beijing vows retaliation: Now what?

 

FILE PHOTO: U.S. President Donald Trump holds a campaign rally in Sunrise, Florida, U.S., November 26, 2019. REUTERS/Yuri Gripas

 

SHANGHAI (Reuters) - U.S. President Donald Trump signed into law here congressional bills that back protesters in Hong Kong and threaten China with possible sanctions on human rights, prompting China's Foreign Ministry on Thursday to warn of "firm counter measures".

 

Mass protests for more democracy and autonomy have rocked the former British colony and more than 5,800 people have been arrested since June, with the escalating violence raising fears that China will ratchet up its response to end the unrest.

 

The “Hong Kong Human Rights and Democracy Act,” which the Senate and House passed last week, puts the special treatment Hong Kong enjoys under U.S. law under tighter scrutiny linked to the extent of the territory’s autonomy from Beijing.

 

A second bill, which Trump also signed, bans the export to the Hong Kong police of crowd-control munitions, such as teargas, pepper spray, rubber bullets and stun guns.

 

WHAT NEXT?

 

Britain returned Hong Kong to China in 1997, and the territory was promised a “high degree of autonomy” for 50 years. Among the key drivers of the protests in Hong Kong is the widespread perception that Beijing has been steadily encroaching on that promised autonomy.

 

The “Hong Kong Human Rights and Democracy Act” that Trump signed requires the State Department to certify at least once a year that Hong Kong retains enough autonomy to justify the favorable U.S. trading terms that have helped it maintain its position as a world financial center.

 

Officials responsible for human rights violations in Hong Kong could also be subject to sanctions, including visa bans and asset freezes.

 

While many see the laws as symbolic, they have the potential to upend relations between the United States and Hong Kong.

 

China’s promise of “high degree of autonomy” for Hong Kong has formed the basis of the territory’s special status under U.S. law.

 

BEIJING ANGERED

 

China has denounced the legislation as gross interference and violation of international law, and on Thursday labeled the United States the “biggest black hand” behind the unrest in Hong Kong.

 

The legislation comes at a time when Beijing and Washington are inching toward a “phase one” agreement to begin to defuse a bruising trade war that Trump has made a top priority.

 

Beijing has signaled that it wants to keep the Hong Kong issue out of the trade war discussions, but the new laws will exacerbate tensions in the bilateral relationship.

 

Separately, some analysts say any move to end Hong Kong’s special treatment could prove self-defeating for the United States, which has benefited from the business-friendly conditions in the territory.

 

If Hong Kong becomes just another Chinese port, this could hurt not just the city and China, but U.S. businesses too, and companies that rely on the territory’s role as a middleman, or for trans-shipping, would likely take their business elsewhere.

 

HOW IMPORTANT IS HONG KONG’S SPECIAL STATUS?

 

From a business perspective, one of the most important elements of Hong Kong’s special status has been that it is considered a separate customs and trading zone from China.

 

That has meant, for instance, that trade-war tariffs don’t apply to exports from Hong Kong.

 

According to the State Department, 85,000 U.S. citizens lived in Hong Kong in 2018 and more than 1,300 U.S. companies operate there, including nearly every major U.S. financial firm.

 

The territory is a major destination for U.S. legal and accounting services and in 2018 the largest U.S. bilateral trade-in-goods surplus was with Hong Kong at $31.1 billion.

 

Trade between Hong Kong and the United States was estimated to be worth $67.3 billion in 2018, with the United States running a $33.8 billion surplus - its biggest with any country or territory, according to the Office of the U.S. Trade Representative.

 

The American Chamber of Commerce in Hong Kong has said that anything that changes the status of the territory “would have a chilling effect not only on U.S. trade and investment in Hong Kong but would send negative signals internationally about Hong Kong’s trusted position in the global economy.”

 

-- © Copyright Reuters 2019-11-28

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11 minutes ago, snoop1130 said:

Beijing has signaled that it wants to keep the Hong Kong issue out of the trade war discussions, but the new laws will exacerbate tensions in the bilateral relationship.

the master of the deal can't make a deal with the Chinese, Japanese, Korea (2) and not Mexico, now he's trying the hard way with China, it will not work either way

Good. No quarter must be given to the commies.

I'm a bit puzzled as to why China just doesn't go in and crush it; too many financial interests involved I guess. Reminds me of a virus, can China contain it? 

He could have kept quiet so as to not endanger any potential deal w/China but he's chosen

to stand with hong kong and freedom. Just as a US president should. Bravo!

37 minutes ago, Mavideol said:

the master of the deal can't make a deal with the Chinese, Japanese, Korea (2) and not Mexico, now he's trying the hard way with China, it will not work either way

@khwaibah@JHolmesJr@Longcut unfortunately they still believe in Santa Claus and the (NO) deal maker. Trump has been trying so hard to make 1 and I mean ONLY 1 deal and so far ..... NO success whatsoever 555 keep up (his) the support

5 minutes ago, JHolmesJr said:

He could have kept quiet so as to not endanger any potential deal w/China but he's chosen

to stand with hong kong and freedom. Just as a US president should. Bravo!

sure,  and that's because he has such a big heart  5555  nothing to do with $$$$$$$$$$$

2 minutes ago, Mavideol said:

sure,  and that's because he has such a big heart  5555  nothing to do with $$$$$$$$$$$

come on you can do better....got any other juicier unproven theories?

51 minutes ago, Mavideol said:

sure,  and that's because he has such a big heart  5555  nothing to do with $$$$$$$$$$$

Probably a lot to do with opinion surveys.

Let them retaliate. China is hurting way more than the USA is. In fact consumer confidence is very high and there have been some very impressive retail numbers. The only way China can retaliate is to walk away from the table. That would cause a small downward movement to the market but it wouldn't matter that much.

 

In the mean time we should hopefully get a deal with Mexico and Canada as they are or were in DC to wrap things up. The USMCA is much more important than China and is much bigger numbers. 

 

Oh well. It's Thanksgiving and record numbers of people are traveling and online spending money. Let China eat a sock they are in no position to threaten anybody and their ability to do so is in decline.

 

Happy Thanksgiving to all fellow Americans. 

 

 

 

Once in a blue moon I agree with something this president does. However, keep in mind if he had vetoed it his veto would have been overturned. So that makes me wonder about his motivations.

41 minutes ago, Jingthing said:

Once in a blue moon I agree with something this president does. However, keep in mind if he had vetoed it his veto would have been overturned. So that makes me wonder about his motivations.

This way he can tell his good buddy Xi that he really doesn't agree with the resolutions and didn't want to sign it but if he refused, that darned pesky American constitutional law would have overturned his veto so what could he do?

Good night Hong Kong. It was fun while it lasted.

The bill would have passed regardless of his signing or not, so much better for him domestically to sign it.

Cannot believe some on here still actually believe the impeachment tripe.

13 hours ago, nausea said:

I'm a bit puzzled as to why China just doesn't go in and crush it; too many financial interests involved I guess. Reminds me of a virus, can China contain it? 

In 1997 HK was 18% of China's GDP, today it is 3%.

Their financial interest is almost negligible.  Amputate the limb with the virus?   Nero fiddles while Rome burns?

13 hours ago, DrTuner said:

Good. No quarter must be given to the commies.E

Exactly. 

They've been ripping us off for decades and at last a POTUS with balls is demanding fair play. 

 

MAGA 

Just his bullying style. The Act is an irritant to US-China relationship. Previous Presidents were wiser to avoid meddling in the internal affairs of any nations. They choose the wiser route to criticize China behavior but not enact aggressive Acts. This Act is provocation by reviewing China’s autonomy attitude towards Hong Kong with the threat of withdrawing MFN status for Hong Kong. This is intervening in domestic policy of China. Trump is so desperate to force China to make a trade deal and stoping his farm supporters that have turned on him. 

I guess better late than never that beeing said he was forced to do it by overwhelming bi partisan support in the house and senate therefore forced to do the right thing if he had any balls he would have done this months ago naaa trump is trump

16 hours ago, JHolmesJr said:

He could have kept quiet so as to not endanger any potential deal w/China but he's chosen

to stand with hong kong and freedom. Just as a US president should. Bravo!

The Congress sent him a bi-partisan, veto-proof bill.  Trump had almost no choice but to sign it.  If left to his own devices, it's doubtful that Trump would do the right thing because he almost never does. 

this seems like a pretty simple story to me.  the one country, two system deal that started with the handover in 1997 was to last until 2047.  it appears the length of that ‘deal’ is going to be shorter than anticipated.  some reports say china claims the ‘deal’ is void already.  if and when the USA believes that to be true, the city of hong kong will be treated like the rest of china.  the USA will do an annual review to determine when that will take effect.

 

i for one am surprised the ‘deal’ has lasted this long and didn’t believe it had any chance of going all the way to 2047.  certainly the transition was expected to begin before 2047, you can’t just flip a switch and be done.  it appears that the first steps of the transition are happening now.

 

i understand many/most hong kongers are unhappy about this but it shouldn’t come as a big surprise.  if the protests continue, i’d suggest that will just accelerate the timetable of china and hong kong becoming one country, one system.

17 hours ago, Mavideol said:

the master of the deal can't make a deal with the Chinese, Japanese, Korea (2) and not Mexico, now he's trying the hard way with China, it will not work either way

He has made new trade agreements with Canada, Mexico,south Korea, Japan and some other countries. Problem is the do nothing democrats in  congress.  

23 minutes ago, buick said:

this seems like a pretty simple story to me.  the one country, two system deal that started with the handover in 1997 was to last until 2047.  it appears the length of that ‘deal’ is going to be shorter than anticipated.  some reports say china claims the ‘deal’ is void already.  if and when the USA believes that to be true, the city of hong kong will be treated like the rest of china.  the USA will do an annual review to determine when that will take effect.

 

i for one am surprised the ‘deal’ has lasted this long and didn’t believe it had any chance of going all the way to 2047.  certainly the transition was expected to begin before 2047, you can’t just flip a switch and be done.  it appears that the first steps of the transition are happening now.

 

i understand many/most hong kongers are unhappy about this but it shouldn’t come as a big surprise.  if the protests continue, i’d suggest that will just accelerate the timetable of china and hong kong becoming one country, one system.

 

They almost seem to be angling to provoke china enough to start a massacre.

Good, and why not a few "Bills" on some of the other inhuman situations going on in that country. Like the internment camps for the Uyghurs? 

16 hours ago, JHolmesJr said:

He could have kept quiet so as to not endanger any potential deal w/China but he's chosen

to stand with hong kong and freedom. Just as a US president should. Bravo!

 

 

Trump called the protesters "rioters."

 

Quote

Trump was asked whether he was concerned by media reports that Beijing might intervene in Hong Kong. He said the city had experienced “riots for a long period of time”.

“And I don’t know what China’s attitude is. Somebody said that at some point they’re going to want to stop that. But that’s between Hong Kong and that’s between China,” he said. “Hong Kong is a part of China, they’ll have to deal with that themselves.”   https://www.scmp.com/news/hong-kong/politics/article/3021067/chinas-top-diplomat-yang-jiechi-accuses-us-fanning-fires

 

Trump won't do anything. He says nothing, does nothing, because he is desperate for his precious trade deal where China buys $50 billion worth of soybeans for the right to continue to steal technology worth half a trillion dollars and spy on American universities.

1 hour ago, Eric Loh said:

 Previous Presidents were wiser to avoid meddling in the internal affairs of any nations.

oh ! enlighten me:

which US president ever avoided meddling with other nations internal affairs ?

list those special ones from ww2

A troll post has been removed. 

11 minutes ago, brokenbone said:

oh ! enlighten me:

which US president ever avoided meddling with other nations internal affairs ?

list those special ones from ww2

Perhaps you can enlighten me whether past POTUS has enacted any ACT to intervene of a similar nature. This ACT is pure provocation and interference in China domestic problems. It is lording over China’s sovereignty. 

8 minutes ago, Eric Loh said:

Perhaps you can enlighten me whether past POTUS has enacted any ACT to intervene of a similar nature. This ACT is pure provocation and interference in China domestic problems. It is lording over China’s sovereignty. 

Its about holding China to being a mature member of the international community as well as keeping it to account for the promises made in the joint declaration.

 

No doubt it's also about China's leaders and the Donald's inner circle doing the diplomatic kabuki dance so they can divert attention from them shorting the market at appropriate times. I mean, they gotta make money right?

9 minutes ago, Eric Loh said:

Perhaps you can enlighten me whether past POTUS has enacted any ACT to intervene of a similar nature. This ACT is pure provocation and interference in China domestic problems. It is lording over China’s sovereignty. 

Didn't the Carter administration pass the Taiwan Relations Act?