Hong Kong: Most Asian markets rose on Monday. Investors remained cautious about the Sino-US trade talks planned over the weekend after Washington imposed sanctions on several Hong Kong officials, which further exacerbated tensions between the superpowers.
Because the executive order signed by Congressman Donald Trump considered putting a plaster on a serious crisis, U.S. lawmakers were unable to find a common ground on the urgently needed new stimulus package, which increased uncertainty.
Last Friday, Washington imposed a series of sanctions on officials in China and Hong Kong, including Hong Kong leader Lin Jiarong. This is the latest sanctions related to Beijing’s decision to impose security laws on the city.
Prior to this, the White House started timing, forcing Chinese Internet giants TikTok and WeChat to terminate all operations in the United States. As part of diplomatic-business offensive analysts, the White House postponed the possibility of entering the November presidential election.
China slammed the sanctions as “barbarous and rude”.
On Monday, Hong Kong media magnate Jimmy Lai, one of the city’s most prestigious critics in Beijing, was arrested under security laws, deepening the suppression of democracy supporters.
US regulators also recommended last week that starting from 2022, overseas companies listed in the US should be subject to US public audit review, which may lead to the delisting of Chinese companies.
The developments have put the spotlight on Saturday’s meeting of trade officials to review their “phase one” trade deal signed in January.
What is worrying is that because China failed to meet certain standards due to the impact of the virus, the agreement may be torn. Most experts say that this move will destroy the already shaky global economy.
Still, National Australia Bank’s Tapas Strickland said: “The running assumption in markets has been President Trump needed the phase one deal to succeed (as much as China) this side of the November elections to secure the midwest” farming belt.
But he added: “At the same time President Trump is running a hard China line into the elections”.