China Ain't Gonna Like This
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2019-11-22 07:00 by Karl Denninger
in International , 217 references Ignore this thread
China Ain't Gonna Like This
[Comments enabled]

We'll see if Trump signs this....

Remember that there is a 1992 law called the "Hong Kong Policy Act of 1992" that has provided the region with privileges and benefits as regard trade, banking access and similar, that are markedly different than China's access to same.  China didn't like the original act and they'll like this one even less, in that now there is a formal annual review and certification that Hong Kong maintains its autonomous nature to continue to receive those putative benefits.

Further, if China extradites Hong Kong citizens to the mainland it imposes a mandatory "identification and asset freeze" (sanctions) requirement on the United States government, including denying visas and canceling existing ones, with a few areas of exception and waiver.

There was basically no opposition in the House or Senate to this bill; in the Senate it passed by voice vote with no opposition (no recorded vote as nobody rose to demand one) and in the House it passed with one "Nay" and 13 people who did not vote.  It thus has a veto-proof majority by a wild margin.

Trump has it on his desk now.  His options are few; he cannot actually block it as a veto would clearly be overridden.  He also can't pocket veto it successfully since there are more than 10 days remaining before Congress will adjourn; if he fails to return it one way or the other it becomes law anyway.

For negotiating reasons he might well pocket veto it anyway, but this much is clear: He can't block it and China isn't going to like it one bit.  Indeed it may well trash the so-called "trade negotiations" (which are increasingly looking like yet another sham) -- and if it does and tariffs ratchet further, I'll tip a glass to Congress actually doing one useful thing this year.

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