Trump says he will take action against China
Strong comments to start, more to come. He brought Pompeo and Mnuchin, which is a hint of something big coming.
- Chinese government has continually violated its promises to us
- China unlawfully claimed territory in Pacific ocean
- China’s coverup of the Wuhan virus allowed it to spread all over the world
We’re still in the preamble but the tough talk has the market worried.
- We will be terminating our relationship with the WHO, redirect elsewhere
That’s not a factor for markets.
- Will issue proclamation on US university research
- Will ask for study to protect US investors (presumably from investing in Chinese stocks)
This was all rumored and isn’t a big deal.
- Have started the process of eliminated policy exemptions that give Hong Kong special treatment
- Directing his administration to “begin the process of eliminating policy exemptions that give Hong Kong different and special treatment” under a “full range” of agreements, from extradition to trade to technology. (Congress has much of this power)
- Will sanction directly or indirectly individuals involved in suppressing Hong Kong
All this was rumored or reported.
Stocks go positive.