China watching Donald Trump’s response to US Hong Kong bill as it threatens to become new barrier to trade deal
- One source says Beijing may decide to ‘fight and talk alternatively’ and is now closely monitoring the US president’s next move following the vote by Congress
- China reacted angrily to the proposals, accusing Washington of interfering in its internal affairs, and may feel obliged to respond
The Hong Kong Human Rights and Democracy Act could become another obstacle to a trade deal between the US and China, sources and diplomatic observers said on Thursday, with Beijing closely watching developments.
While US President Donald Trump is not expected to veto the bill, which enjoys broad bipartisan support, even the symbolic aspects may carry an extra significance – with a high-profile signing ceremony likely to further anger the Chinese government.
“The Hong Kong issue has the potential to influence the process of the trade talks. China will have to respond … if Trump signs it into law,” said one person who is familiar with the trade talks.
Some sources said that in a worst-case scenario, China was willing to “fight and talk alternatively”.
Negotiators from both sides have yet to finalise a date and venue for the US president and his Chinese counterpart, Xi Jinping, to meet to sign an interim deal after an initial plan to finalise arrangements at the Asia-Pacific Economic Cooperation summit in Chile fell through when the event was cancelled.
This delay has left a range of issues, from tariff reduction to intellectual property protection, still hanging in the air.