Trade deal "stalled because of Hong Kong legislation"

Via AXIOS:

A week ago, U.S. sources close to the China talks indicated they were on the precipice of a “Phase One” deal. But that optimism now seems premature, if not misplaced.

Congress sent legislation to Trump’s desk that angered Beijing, interrupted the trade talks, and telegraphed support for democracy and human rights in Hong Kong. The new Hong Kong Human Rights and Democracy Act requires the president to impose sanctions on people who violate human rights in Hong Kong.

Trump begrudgingly signed off, as the legislation passed with veto-proof majorities.

Beijing responded with predictable fury and threats, even as Trump took pains to downplay the bill and to flatter President Xi in his signing statement.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.

Trade deal “stalled because of Hong Kong legislation”