GUIDANCE

U.S. Threats to Overhaul Hong Kong Policy Intensify China Confrontation

undefined and Asia-Pacific Analyst
Evan Rees
Asia-Pacific Analyst, Stratfor

May 29, 2020 | 22:34 GMT

U.S. President Donald Trump speaks about U.S. relations with China at the White House on May 29, 2020.

U.S. President Donald Trump speaks about U.S. relations with China at the White House on May 29, 2020.

(Win McNamee/Getty Images)

Highlights

  • The U.S. president detailed policy changes including a number of immediate measures with regard to China and a more ambiguous list of policy options under consideration regarding Hong Kong.
  • If Washington exercises policy options such as shifting Hong Kong's tariff status under U.S. law, Beijing will likely retaliate with options jeopardizing the current trade war truce.
  • Regardless of what the White House decides on Hong Kong, bilateral tensions are set to mount in the coming months.

U.S. President Donald Trump's May 29 announcements adjusting U.S. policy toward China could derail the phase one U.S.-China trade deal if fully implemented, but they are unlikely to deter Beijing's determination to implement new Hong Kong national security legislation -- and no matter what, Hong Kong protest activity will increase in the coming months....

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