There have been heavy protests arising from various parts of Hong Kong against China in recent times.
The U.S. under President Trump has signed a bill to support pro-democracy protestors in Hong Kong. This has drawn a strong protest from China. The bill was signed by the president into law, by which Hong Kong demonstrators will receive support from the U.S.
The bill signed was the Hong Kong Human Rights and Democracy Act, by which the U.S. can support the Hong Kong pro-democracy protestors.
China warns the U.S. against “interfering” in the internal happenings of Hong Kong. This has further hampered trade talks between the U.S. and China. China’s Foreign Ministry spokesperson Hua Chunying warns the U.S. about further interference in the internal affairs of China or in Hong Kong affairs.
China has barred the U.S. Navy and military aircraft from entering Hong Kong borders. Further, sanctions will be imposed on non-profits that are U.S. based, it says.
Ms. Hua states that organizations like Human Rights Watch, the National Endowment for Democracy, National Democratic Institute for International Affairs and Freedom House will be sanctioned for their interference in Hong Kong.
A phase-one deal was ready for negotiations between the two large economies. But with the signing of the bill by the U.S., talks have now stalled between the two countries.
The U.S. President had earlier planned the next tariff on China on Dec 15. Now, it is expected that he may hold back the planned tariffs, so that the phase one deal may proceed.
The trade war that has gone on for 17 months has brought a slowdown in global growth, hurting every country and the stock markets too.
The bill supporting Hong Kong demonstrators by the U.S. has Wall Street investors worried. It may derail further trade negotiations, they feel. The stock market which is currently at record highs may stumble, they feel.