U.S. President Donald Trump has signed in new legislation that would sanction Chinese officials cracking down on political dissent and banks that conduct «significant transactions» with them.
The «Hong Kong Autonomy Act» has been signed into law by Trump aiming to target officials implementing the new national security law in the city. The bill was unanimously approved in the Senate and the House of Representatives after Beijing first signaled that it would bypass Hong Kong’s legislature to enact the security law in May.
«No administration has been tougher on China than this administration,» Trump said, adding that no plans to speak with China's President Xi Jinping.
Neither Trump nor his administration specific which Chinese officials might be sanctioned nor how major sectors, like finance, would be affected by the new measures. Top advisors in the administration were reportedly exploring measures aimed at undermining the Hong Kong dollar peg but dropped the consideration after lacking internal support due to the risk of collateral damage to other local and U.S. banks.
Special Status Dropped
In addition to the «Hong Kong Autonomy Act» President Trump also ordered an end to Hong Kong’s special status with the U.S. This includes a series of measures including the elimination of preferences for Hong Kong passport holders, the end of training for police and security service members, reallocation of refugee slots for Hong Kong residents and more.
«If the U.S. continues such action, China will resolutely take countermeasures,» China's Foreign Ministry responded in a statement. «To safeguard China’s legitimate interests, we will take necessary measures and impose sanctions on relevant individuals and entities from the U.S.»
