China is threatening to retaliate economically against the United States.
The government in Beijing said on Monday that U.S. attempts to harm Chinese interests will be met with firm countermeasures. The threat comes after the U.S. decision to begin ending its special treatment of Hong Kong.
China’s parliament last week voted to move forward with imposing national security legislation on Hong Kong, which U.S. President Donald Trump said on Friday was a tragedy for the people of the city, and which violated China’s promise to protect the city’s autonomy.
Trump ordered his administration to begin the process of eliminating special U.S. treatment for Hong Kong to punish China, ranging from extradition treatment to export controls. But Trump stopped short of calling an immediate end to privileges that have helped the former British colony remain a global financial centre.
Trump gave no time frame for the action, 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.
Political leaders in Beijing said they are considering halting imports of U.S. agriculture products such as wheat and soybeans in retaliation against the American threats to end the special relationship with Hong Kong.
Despite the rising political tensions, Hong Kong shares index rose more than 3% on Monday as investors found relief in the fact that Trump did not immediately end the special U.S. privileges for the city. At the close of trading Monday, the Hang Seng Index was up 3.36%, its biggest one-day percentage gain since March 25.
