To the relief of investors, the president didn’t mention pulling out of a trade deal he signed with China in January.
President Donald Trump on Friday threatened to increase tariffs on imports from Hong Kong and to take other action to punish China for what he called “deeply troubling” moves to exert more control over the former British colony.
In one concrete step, Trump issued a proclamation on Friday to bar Chinese graduate students with potential military ties from studying the United States in an effort to protect research done at U.S. universities against Chinese intellectual property theft.
In another move, Trump said the United States was withdrawing from the World Health Organization, which he has criticized for being too soft on China during the early stages of the coronavirus pandemic.
In perhaps the most significant trade action, Trump said his administration would take steps to revoke Hong Kong’s preferential treatment as a separate customs and travel territory apart from the rest of China.
For Hong Kong, which has long enjoyed exemptions from U.S. rules on China, such a move would expose its exports to the same duties that Trump has unilaterally imposed on more than $350 billion worth of Chinese goods.
However, Trump’s broader pronouncements seem to insulate the financial, international trade and other business relationships both Hong Kong and China enjoy, at least for now.
U.S. stocks rallied after the speech, reflecting relief among investors that Trump did not further roil relations with Beijing by pulling out of a phase one trade deal that both countries signed in January.
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Trump issued a proclamation to bar Chinese graduate students with potential military ties from studying the United Stateshttps://t.co/70CBYTyRHb
— POLITICO (@politico) May 30, 2020
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