China vows retaliation after Trump ends preferential status for HK

Beijing warned of retaliatory sanctions against the U.S. on Wednesday (July 15) after President Donald Trump ordered an end to Hong Kong's special status.

Trump on Tuesday (July 14) signed the Hong Kong Autonomy Act to end the Chinese ruled city's special status under U.S. law. He also signed a bill approved by the U.S. Congress to penalise banks doing business with Chinese officials who implement the new security law, as well as an executive order, which revokes special treatment for Hong Kong passport holders, among other directives.

Chinese foreign ministry spokeswoman Hua Chunying said China would impose retaliatory sanctions against U.S. individuals and entities in response.

Hong Kong-based securities analyst Francis Lun warned the U.S. measures would unlikely have any impact on China's policies towards Hong Kong, and the direct impact on Hong Kong's economy would be limited, due to the limited exports from Hong Kong to the U.S.

"They don't care… starting from July 1st, 2020, it's one country one system," said Lun, referring to the 'One Country Two Systems' arrangement, under which Hong Kong is guaranteed a high degree of autonomy.

Critics of the security law fear it will crush the wide-ranging freedoms promised to Hong Kong when it returned to Chinese rule in 1997, while supporters say it will bring stability to the city after a year of sometimes violent anti-government protests. The security law punishes what Beijing broadly defines as subversion, secession, terrorism and collusion with foreign forces with up to life in prison.