Donald Trump said the United States would revoke special trade privileges for Hong Kong and sanction officials from the territory and mainland China after Beijing decided to impose new security laws on the former British colony.
The President unveiled a wide range of actions to target China on Friday, including banning certain Chinese nationals from entering the United States, which he said would protect scientific research and national security. .
Trump said the United States would prevent Chinese nationals linked to the People’s Liberation Army from obtaining student visas and work exchanges, with the aim of targeting the “strategy of civil- military “of China. It was not clear how many Chinese citizens would be affected by the action.
He also announced that he would revoke Hong Kong’s preferential status as a travel territory separate from China, which could have an impact on visa-free travel.
“The United States will also take steps to sanction the PRC [People’s Republic of China] and Hong Kong officials directly or indirectly involved in the erosion of Hong Kong autonomy, “Trump said in the White House.
The actions come days after China decided to impose national security laws in Hong Kong. Critics said the Chinese move would erode autonomy that the former British colony was guaranteed for 50 years under the “one country, two systems” model that supported his return to China in 1997.
“China has replaced this promised formula of” one country, two systems “with” one country, one system, “said Trump, accusing China of breaching its treaty obligations to Britain in connection with the 1984 China-United Kingdom Declaration which paved the way for the return of Hong Kong to China.
Trump said his team would review the practices of Chinese companies listed on the US stock exchanges to protect American investors. “Investment firms should not subject their clients to the hidden and undue risks associated with financing Chinese firms that do not follow the same rules.”
These measures will fuel new tensions in US-China relations, which have become increasingly strained in recent months as Trump has accused China of the global spread of the coronavirus pandemic.
Evan Medeiros, a former senior White House adviser in Asia to Barack Obama, said that while Mr. Trump spoke hard, he had only started one process.
“Even if he does them all, it’s the equivalent of shooting the hostage – but in the leg. It doesn’t help Hong Kong and, most importantly, doesn’t deter Beijing in the future,” said Mr. Medeiros, now a professor at Georgetown University.
Medeiros said that because US options on Hong Kong were “poor”, it was important to build an international coalition to condemn China through the advanced G7 economies. “In the absence of this, Beijing will reject Washington’s action as” all hats, no cattle “.”
But Eswar Prasad, a former senior IMF official, said that the combination of Chinese action and the American response meant that Hong Kong’s long-term viability as a financial center was “now seriously threatened”.
Trump also announced that the United States would withdraw from the World Health Organization as it reiterated its criticism of how the body worked with China at the start of the coronavirus pandemic. He has already ordered the suspension of millions of dollars in US funding from the World Health Agency while a review was conducted of his handling of the crisis.
“The world is now suffering from the misdeeds of the Chinese government,” said Trump.
Mike Pompeo, Secretary of State, said this week that the United States no longer saw Hong Kong as autonomous from China, in a statement that paved the way for the revocation of special trade privileges. The removal of this status could result in Hong Kong being subject to tariffs applicable to mainland China.
The State Department is required to certify annually whether Hong Kong is autonomous, under an American law passed last year in response to Chinese efforts to suppress political expression in the financial center.
The Trump administration has become more assertive towards China over everything from cyber espionage to efforts to pressure the U.S. federal pension fund to not invest in China. Democrats and Republicans largely agree on the need to adopt a more hawkish stance towards Beijing.
Trump previously took a softer stance toward Hong Kong. Last year, the Financial Times reported that it had told Chinese President Xi Jinping at the G20 summit in Osaka that he would not take an affirmative approach in Hong Kong in order to prevent the tensions of derailing the Sino-US trade negotiations.
But on Friday, Trump said his actions would be “significant.”
Any revocation of Hong Kong preferential treatment for travel could have important business implications as people can currently travel between the United States and Hong Kong as part of a visa waiver program.
Wendy Cutler, a former US trade negotiator, said it was difficult to measure the scope of the actions without further details. But she said that Trump had put “strong actions” on the table.
“When choosing how to take specific action, the administration should weigh a handful of considerations, including the impact on Hong Kong citizens and American businesses, as well as possible countermeasures from China,” said said Ms. Cutler, who is now with the Asia Society. .
The White House said that Trump had spoken to Boris Johnson, the British Prime Minister, and “reaffirmed the importance” of the 1984 declaration.
Follow Demetri Sevastopulo on Twitter: @dimi
