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On the politics front today – China expected to pass Hong Kong law

Its expected that the national security law will pass China’s National People’s Congress (NPC) parliament Thursday 28 May 2020.

This (in very brief) law imposes a new national security law in Hong Kong, bypassing the city’s legislature, with stricter measures on sedition, secession and subversion against Beijing. The new law allows mainland Chinese national security agencies to operate in HK.
I’ve been saying on this law that the NPC passing it is basically a done deal, the annual parliament sits to rubber stamp drafts. To that extent its passing is an event factored into the market already.

Senior Chinese diplomat: US actions severely damages bilateral relations

Further comments by senior Chinese diplomat, Wang Yi

  • US has many times interfered with China’s internal affairs
  • US should meet China halfway to build cooperative, stable bilateral relations
A couple of harsher words used there but it is nothing that we haven’t heard of with regards to the passing of the HK bill. It is now down to Trump to sign off on that but that appears to be more of a formality at this point.
USD/JPY has eased back a little to 108.52 now after hitting a high of 108.67 after the Chinese commerce ministry remarks just over an hour ago.

China state media on the US’ “utile trade war” – stop acting as a “school bully”

Xinhua News Agency the official state-run press agency of the People’s Republic of China urges Washington to start learning at least four lessons from their futile trade war with China

You can click theĀ link here for the four lessons if you like, but in brief its not a conciliatory piece. Some snippets:
  • China is an unbent nail in face of U.S. tactic of maximum pressure
  • China’s determination to fight against the U.S. economic warmongering has only grown stronger
  • their trade war is hurting the American people and businesses
  • the United States should learn how to behave like a responsible global power and stop acting as a “school bully.”
Finishes with a dig at the guy with the little red hat:
  • Only then can America become great again.