In broadside against China, Trump moves toward ending Hong Kong privileges

[rooster59]

In broadside against China, Trump moves toward ending Hong Kong privileges

By Steve Holland, David Brunnstrom and Sarah Wu

 

U.S. President Donald Trump addresses a news conference on China in the Rose Garden of the White House in Washington, U.S., May 29, 2020. REUTERS/Jonathan Ernst

 

WASHINGTON/HONG KONG (Reuters) - President Donald Trump on Friday ordered his administration to begin the process of eliminating special U.S. treatment for Hong Kong to punish China, but stopped short of calling an immediate end to privileges that have helped the territory remain a global financial center.

 

In making the announcement, Trump used some of his toughest rhetoric yet against China, saying Beijing had broken its word over Hong Kong's autonomy by moving to impose new national security legislation and the territory no longer warranted U.S. economic privileges.

 

At a White House news conference, Trump called this a tragedy for the people of Hong Kong, China and the world, having already attacked Beijing over the coronavirus pandemic, which began in China. Trump said China's "malfeasance" was responsible for massive suffering and economic damage worldwide.

 

"We will take action to revoke Hong Kong's preferential treatment as a separate customs and travel territory from the rest of China," Trump said, adding that Washington would also impose sanctions on individuals seen as responsible for "smothering - absolutely smothering - Hong Kong's freedom."

 

He did not name any of the potential sanctions targets. Trump said his announcement would "affect the full range of agreements we have with Hong Kong," from the U.S. extradition treaty to export controls on dual-use technologies and more "with few exceptions."

 

"Our actions will be strong, our actions will be meaningful," Trump added.

 

China's state-run Global Times newspaper called Trump's announcement "recklessly arbitrary."

 

Trump gave no time frame for the moves, suggesting he may be trying to buy time before deciding whether to implement the most drastic measures, which have drawn strong resistance from U.S. companies operating in Hong Kong.

 

He also said he was issuing a proclamation to better safeguard vital university research by suspending entry of foreign nationals from China identified as potential security risks.

 

Sources, including a current U.S. official, told Reuters on Thursday that the latter move could affect 3,000 to 5,000 Chinese graduate students.

 

Financial markets saw Trump's announcement as more bark than bite and U.S. stocks finished mostly higher as it was seen as less threatening to the U.S. economy than investors had feared.

 

"I don't think a lot has changed," said Craig Allen, president of the U.S.-China Business Council. "We haven't taken steps that really ratchet up the tension even more."

 

He said he interpreted the actions rescinding Hong Kong's special status as being first subject to review by various agencies and not happening immediately.

 

REVVED-UP RHETORIC

 

Trump's revved-up rhetoric against China comes in the midst of his re-election campaign in which opinion polls show voters increasingly embittered toward Beijing, especially over the coronavirus.

 

Trump may be mindful though that a more serious rupture with Beijing could upend his hard-fought Phase One trade deal with the world's second-largest economy, which he has counted on for economic benefit in major U.S. farm states.

 

Trump also has to take into account the effect on the more than 1,300 U.S. firms that have offices in Hong Kong and provide about 100,000 jobs.

 

Daniel Russel, the top U.S. diplomat for East Asia until early in Trump's administration, said his Hong Kong provisions remained "fairly vague" and "it remains to be seen how quickly and extensively they are implemented."

 

But there was a risk that removing Hong Kong's special status might inadvertently accelerate its loss of autonomy.

 

"Beijing clearly calculated that the collateral damage to their overall interests from U.S. retaliation for would be manageable," Russel said.

 

While Trump gave no time frame for moves, two people familiar with the matter said that among options under consideration were to set a deadline of a year from now for China to step back or else face full revocation of Hong Kong's special status.

 

Such a deadline would buy time to avoid a major rupture in relations ahead of the Nov. 3 U.S. election. By the end of that period, however, Trump might no longer be in office to make the final decision.

 

Trump's announcement came after Secretary of State Mike Pompeo declared China's erosion of Hong Kong's autonomy meant the territory no longer warranted special treatment under U.S. law. [L4N2D90NG]

 

Earlier, Hong Kong's Beijing-backed government told Washington to keep out of the national security debate, and warned that withdrawal of the financial hub's special status could backfire on the U.S. economy.

 

"Any sanctions are a double-edged sword that will not only harm the interests of Hong Kong but also significantly those of the U.S.," it said late on Thursday.

 

It said that from 2009 to 2018, the cumulative U.S. trade surplus of $297 billion with Hong Kong was the biggest among all U.S. trading partners.

 

Chinese authorities and Hong Kong's government say the security legislation poses no threat to the city's autonomy and the interests of foreign investors will be preserved.

 

(Reporting Steve Holland, David Brunnstrom, Eric Beech, Jeff Mason, Matt Spetalnick, David Lawder and Daphne Psaledakis in Washington; Additional reporting by Sarah Wu and Marius Zaharia, James Pomfret, Greg Torode, Clare Jim, Sumeet Chatterjee and Anne Marie Roantree in Hong Kong, Michael Shields in Geneva, Kanishka Singh in Bengaluru; Writing by David Brunnstrom, Michael Perry and Robert Birsel; Editing by Clarence Fernandez, Simon Cameron-Moore, Timothy Heritage, Will Dunham and Cynthia Osterman)

 

-- © Copyright Reuters 2020-05-30

 

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[Matzzon]

Welcome to Mr Trump Playtime! Coming to you everyday at 07.00-forever.

[LomSak27]

He has it coming from every direction now. Hey Donald, maybe the Chinese offed Lori Klausutis in Miami and not Joe Scarborough.  ???? 

 

[TopDeadSenter]

Trump has fired more broadsides this week than the entire Spanish Armada. I love it when he rolls his sleeves up and gets to work. Of course, fans of the CCP are upset by this, but funny how there is more of them in rich western societies than in Hong Kong. Good luck to the HK people in stopping the insidious creep of communism, with Trump's help you have a fighting chance. 

[LomSak27]

Just now, TopDeadSenter said:

Good luck to the HK people in stopping the insidious creep of communism, with Trump's help you have a fighting chance. 

Unless Donald gets moving, puts out the fires in Minneapolis and Louisville, literally. Then back to fighting the Wuhan virus ... woo sorry he has abdicated he responsibility to the states, as he has no clue what to do, except criticize & sneer. Anyway he needs to get rolling on those problems, before any country or Hong Kong takes him seriously. Maybe he should sidetrack with more nasty tweets about Lori Klausutis being killed by NBC TV host Joe Scarborough?! . If you can't help, might as well confuse em. 

 

 

Edited May 30, 2020 by LomSak27

[sonos99]

It seems to me that by taking this action the US is punishing the people of HK. They will suffer the economic brunt of these measures but they will have little effect on China. Also rather than drawing any distinction between HK and China the US has agreed with the Chinese position that HK is part of China and will be treated accordingly. 

[Eric Loh]

Don’t see how this will punish China. US has a trade surplus with Hong Kong albeit small. 1,300 US companies operate in Hong Kong that allow them to do business with the mainland without complying with their regulations and foreign ownership. The lifting of trade privileges will do

damage to them. Hong Kong only contribute 2.7% to China’s GDP. Instead it will weakened Hong Kong’s financial status, Hang Seng and creat havoc with the currency pegged to the dollar. It will hurt Hong Kong and may change the citizens perception of US and push them closer to China. China has already calculated the risks before they introduced the security law and they willing to bear the consequences in order to maintain authority. 

[Dumbastheycome]

IMO Trump is indicating that in terms of whatever agreements exist he is simply providing an exit period of time in which to sever such ties.

Hong Kong is undeniably part territory of China. That it has been and should be left to continue the time limited "two systems" agreement also undeniable.

Is it possible that Trump is willing to throw Hong Kong under a bus in some belief that will hurt China so much? The US trade surplus which is likely to be more due to being a back door to  mainland China would suggest  otherwise.

 

 

 

 

[mrtc77]

Gutting American factories and jobs... Lol. BS! 

I see the Waltons, Home Depots, Lowes etc people sure are lying low these days!!! 

[TKDfella]

That wasn't all Pres. trump said at that announcement. 'Terminating relationship with WHO' because, basically, that the WHO was too aligned with China.

Edited May 30, 2020 by TKDfella

[Mick501]

Got to hand it to President Trump.  He saw China for what it was and took action to decrease reliance on the Chinese.  His actions in doing so have doubtless reduced the economic pain for the USA.  The rest of the world is starting to have a light bulb moment and see just how right he was.  Has there ever been a president in the lifetime of anyone alive today who has had such foresight?

[JulesMad]

32 minutes ago, Mick501 said:

Got to hand it to President Trump.  He saw China for what it was and took action to decrease reliance on the Chinese.  His actions in doing so have doubtless reduced the economic pain for the USA.  The rest of the world is starting to have a light bulb moment and see just how right he was.  Has there ever been a president in the lifetime of anyone alive today who has had such foresight?

About time the world sees america for what it is... Has there ever been a president in the lifetime of anyone alive or dead today who was such a complete moron, hypocrite liar and absolute idiot?

[Mick501]

13 minutes ago, JulesMad said:

About time the world sees america for what it is... Has there ever been a president in the lifetime of anyone alive or dead today who was such a complete moron, hypocrite liar and absolute idiot?

Not sure what the prize is for 2nd, but congrats all the same.

[ChouDoufu]

it will be most interesting, come the next wave of hong kong protests, if president xi were to troll trump by twooting that "these thugs" are dishonoring china and declare that he stands with the chief executive, that the pla is ready to deal with the situation, that the central government will assume control, and "when the looting starts, the shooting starts!"

[Sweet Swede]

When will ever people understand that Trump is a living disaster, a fascist, racist and and without any feelings except for himself. Because of his great support in USA i now realize that citizens of USA to a great extent are racist and fascist. Not good and I just hope he actually succeed in isolating the USA from the rest of the world. WE DO NOT WANT HIM OR THE USA AND WE DO NOT NEED  THEM.   

[IAMHERE]

Hong Kong is now part of mainland China, so it ain't special, it is the same. So same trading parameters as the mainland. Seems simple, you were special, now you aren't.

[Isaan sailor]

Gotta feel sorry for the HK people.  Communist China bearing down on them.  

[timendres]

2 hours ago, Sweet Swede said:

When will ever people understand that Trump is a living disaster, a fascist, racist and and without any feelings except for himself. Because of his great support in USA i now realize that citizens of USA to a great extent are racist and fascist. Not good and I just hope he actually succeed in isolating the USA from the rest of the world. WE DO NOT WANT HIM OR THE USA AND WE DO NOT NEED  THEM.   

 

I sincerely hope your wish comes true.

[AverageBloke]

This is just a vote getter and I don't think he'll follow through. Trump knows the American people aren't happy and need someone to blame. He would have had a go at the Federal Reserve but quantative easing is the only thing keeping the economy afloat and he needs them to maintain the illusion until the election. 

[sscc]

This hurt Hong Kong a little.  This hurt the American Corporations in Hong Kong a little too.  Impact to both are not serious in any way.  Big talk with little substance is Trump style anyway. 

 

[RickTik]

What the minions don't realize is that, within the Global Commission (NWO), a deal has already been reached.

China will temporarily back-off of military pressure on Taiwan.

In exchange, China can take care of business in Hong Kong.

A little verbal rhetoric between China and the USA is just cover while the NWO operatives work together to secure the global police state network and cull the human herd.

Nothing personal. It's just business. ✌

Edited May 31, 2020 by RickTik
Tweaking verbiage

[holy cow cm]

1 hour ago, RickTik said:

What the minions don't realize is that, within the Global Commission (NWO), a deal has already been reached.

China will temporarily back-off of military pressure on Taiwan.

In exchange, China can take care of business in Hong Kong.

A little verbal rhetoric between China and the USA is just cover while the NWO operatives work together to secure the global police state network and cull the human herd.

Nothing personal. It's just business. ✌

No proof of him saying that. He is no where near to being Illuminati. But there is one thing for sure, it may take a small skirmish to severe China's dirty little head and down size their population.

[Traubert]

So easy then?

 

This isn't a gang a goat herders. It's an organised, well equipped  Army.

 

[GinBoy2]

The one thing that really would change the dynamic of this whole situation is nothing to do with Trump.

 

If the UK which remove the restrictions on BNO passports which would allow ordinary Hong Kongers to leave I truly believe that would be a game changer