The news is dominated this morning by headlines from China. China’s National People’s Congress (CPC) in Beijing dropped its official target for this year, for the first time in history. Far more significantly, the CPC said it would enact controversial security laws directly into Hong Kong’s Basic Law, bypassing the local legislature. The announcement was met by howls of protest from the United States, which has threatened retaliation. That followed increasingly aggressive trade barbs between the two sides overnight.
Hong Kong stock markets have fallen substantially this morning, also dragging down mainland exchanges. The very real threat now, is the return of mass protests to the streets of Hong Kong, a downgrade in trade status with the US, and potentially an exit of large companies from the SAR. Overhanging this, are concerns that China and the United States are about to engage in a new round of trade wards. In all honesty, the timing could not be worse by China, facing…
