Trump Threatens “Very Strong Reaction” If Beijing “Interferes” With Hong Kong

Thursday, May 21, 2020
By Paul Martin

by Tyler Durden
ZeroHedge.com
Thu, 05/21/2020

Did President Trump just crank the belligerent rhetoric up to ’11’?

During a briefing with reporters, President Trump answered questions about the MSM fixations du jour, including his feelings on mail-in ballots and his current COVID-19 infection status (still negative). But amid the fluff, one reporter asked an important question referencing Thursday’s decision to adopt a new “national security” resolution opening the door to new laws allowing Beijing to punish political dissidents with impunity.

Trump replied that if this happens, the US would respond with a “very strong reaction.” You’ll remember that last year, President Xi warned in a speech that any foreign powers who screwed with China’s relationship with Hong Kong and Taiwan would face serious consequences.

TRUMP, ASKED ABOUT CHINA’S MOVE ON HONG KONG, SAYS IF IT HAPPENS U.S. WILL HAVE A VERY STRONG REACTION
A few hours ago, Chinese tech giant Baidu became the first major Chinese company to delist from an American exchange (it de-listed from the Nasdaq) in retaliation against a bill passed by the Senate that would require Chinese companies to submit to certain auditing conditions that Beijing currently resists, for dubious reasons.

With the WHA agreeing to an “independent” investigation of China’s early response to the coronavirus, and President Trump embracing increasingly belligerent rhetoric as his administration pins its reelection hopes on vilifying China as an ascendant American foe that effectively – even if inadvertently – unleashed a potent biological weapon on the world, investors including David Tepper have said they see a tail risk of an armed conflict between the world’s two largest economies.

Fortunately for the Fed, investors haven’t really woken up the possibility yet.

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