China to be more resolute in countering US, intolerant to city opposition – Global Times

In response to the US reaction to the Hong Kong security law, China marks intolerance to the opposition while citing hand-to-hand combat, per the Global Times. The piece, published early Thursday morning in Asia, highlights Beijing’s readiness to escalate tensions with the Trump administration.

Key quotes

Signing into law the so-called Hong Kong Autonomy Act indicates that the game between China and the US has turned into a "hand-to-hand combat" on Hong Kong affairs, which will force China to be more resolute in countering the US, and more intolerant to Hong Kong opposition forces' actions that may violate the national security law for Hong Kong, analysts said.

The Chinese Foreign Ministry said on Wednesday that the Chinese government firmly opposes the Act and strongly condemns it, and China will impose sanctions on relevant US personnel and entities to safeguard China's legitimate interests. 

US President Donald Trump on Tuesday signed into law the Hong Kong Autonomy Act, which imposes sanctions on what it calls foreign individuals and entities that materially contribute to China's "failure to preserve Hong Kong's autonomy," and would allow the US president to impose property-blocking sanctions on an individual or entity, visa sanctions on a named individual, and prohibit a financial institution from receiving loans from a US financial institution.

On China's possible countermeasures, Chinese analysts said China may impose reciprocal visa restrictions and freeze the assets of some US officials. 

The sponsors of the act, Senators Chris Van Hollen and Pat Toomey, are very likely to be on China's sanctions list, and Pelosi, who once described Hong Kong riots as a "beautiful sight," may also be on the list, analysts said. 

Also on the list could be some people from the US consulate general in Hong Kong, such as Julie Eadeh, its political unit chief, who frequently met with leaders of Hong Kong rioters like Joshua Wong and Martin Lee Chu-ming, Li Haidong said.

FX implications

The news raises bars for the market’s latest risk-on mood and adds to the White House announcement suggesting a ban on Chinese apps. As a result, S&P 500 Futures fade upside momentum, currently up 0.09% to 3,223.