Bloomberg "Possibility of Asset Freeze"
[Asia Economy New York=Correspondent Baek Jong-min, Beijing=Correspondent Park Sun-mi] One day before the vote on China's Hong Kong National Security Law (Hong Kong Security Law), U.S. President Donald Trump has announced strong sanctions. This indicates that measures such as sanctions against China, which had been at the warning level, may become a reality, drawing attention. China is determined to push forward with the legislation, escalating the U.S.-China conflict over the Hong Kong issue to its peak.
On the 26th (local time), President Trump said at a White House press conference that the U.S. would take action regarding China's enactment of the Hong Kong Security Law within this week. When asked about the possibility of U.S. sanctions, he said, "We are doing something now," adding, "You will hear about it before the end of this week. I think it will be very strong..." signaling that strong measures will be taken soon.
The likely targets of U.S. sanctions related to the National Security Law will primarily be individuals involved in its enactment. Bloomberg News reported that if the Hong Kong Security Law is enacted, the U.S. Treasury Department could sanction Chinese officials, companies, and financial institutions. Asset freezes were also mentioned as a possibility.
There is also a high possibility of reconsidering Hong Kong's special status, including tariff benefits. White House Press Secretary Kayleigh McEnany said at a briefing that "President Trump expressed displeasure regarding China's insistence on pushing forward with the Hong Kong Security Law," and "also questioned the future maintenance of Hong Kong's status as a financial hub."
China's state-run Global Times published an expert interview stating that if the U.S. attacks China, the damage will be borne entirely by the U.S. Lau Siu-kai, vice chairman of the Hong Kong-Macau Research Association and former chief advisor of the Hong Kong government think tank Central Policy Unit, said, "Even though the U.S. has many countermeasures, most of them will gain little benefit and will incur many costs and great pain," warning, "The Chinese government can take strong countermeasures. It can expand additional tariffs on U.S. goods and services."
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