U.S. Bill Supporting Hong Kong Rights Heads to Trump’s Desk – The New York Times

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The United States and China have been grappling over the fate of tariffs that Mr. Trump imposed on $360 billion of Chinese imports and additional tariffs that are due to be imposed on Dec. 15. China wants all of the tariffs rolled back as part of an agreement in which it would buy as much as $50 billion of American agricultural products a year and begin to open its markets to American companies.

Mr. Trump, however, is reluctant to scale back all the tariffs, and his advisers remain skeptical that China will live up to its commitments.

Henrietta Treyz, director of economic policy at the investment firm Veda Partners, said that the Hong Kong legislation raised the odds that the December tariffs will be imposed. She pointed to a series of caustic posts on Twitter written by the editor of The Global Times, a Chinese state-controlled publication, warning American farmers that the deal Mr. Trump promised them was not yet complete.

“Tensions are rising between the two nations, not dissipating,” Ms. Treyz said. “The prospect of not reaching a deal and requiring escalation from here remains quite real.”

The possibility that the Hong Kong bill could be signed into law has shaken the confidence of Wall Street analysts who had become increasingly optimistic in recent weeks that tariffs could be rolled back as part of the first phase of a trade deal.

Economists at Goldman Sachs said in a note to clients this week that the Hong Kong legislation was a potential “complication,” warning that China’s Ministry of Foreign Affairs had promised “strong countermeasures” if such a bill were enacted.

Still, the trade talks have continued over the last year despite several spikes in tension between the United States and China, including the arrest of the Huawei executive Meng Wangzhou in Canada and the sale of 66 F-16s to Taiwan this summer.

Source Article from https://www.nytimes.com/2019/11/20/business/hong-kong-human-rights-act.html

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