(Yahoo) – China threatened to retaliate if the U.S. Congress follows through with enacting legislation that would require an annual review of whether Hong Kong is sufficiently autonomous from Beijing to justify its special trading status. The Chinese Ministry of Foreign Affairs said in a statement on Wednesday that it would take strong measures if the bill passed. The Hong Kong Human Rights and Democracy Act is one of four measures passed by the U.S. House in unanimous voice votes Tuesday.
The bill provides for sanctions against officials “responsible for undermining fundamental freedoms and autonomy in Hong Kong.” A similar bill is also pending before the Senate, where the legislation has strong bipartisan support. The legislation must pass both houses and be signed by President Donald Trump to become law. China’s threat dented investor appetite for risk, with S&P 500 Index futures slipping 0.2% and the offshore yuan weakening slightly. READ MORE
