The US and China put an end to the trade deal »News GoGetNews

The United States and China will find it much harder to close a deal after Congress passed the Hong Kong Democracy Support Bill, Tom Orlik, an analyst with the agency, said in an interview with Bloomberg.

According to him, the conclusion of a deal with Washington is important for Beijing, but the preservation of control over special administrative regions: Hong Kong and Macau remains a much more important goal. The new document, if signed by President Donald Trump, will significantly complicate its achievement, and therefore, according to Orlik, the Chinese authorities will not try to please the White House with all their might and agree to live on in the conditions of a trade war.

Rabobank strategist Petr Matis, in turn, told Reuters that the bill’s adoption “will significantly complicate the move to a bargain.”

Saxo Bank chief currency strategist John Hardy in his review (at the disposal of noted that he now considers the deal between the two countries unattainable. “If this bill is adopted, then I don’t see an opportunity to conclude any kind of trade agreement,” the financier said.

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On November 19, the US Senate passed a bill obliging the White House to annually review trade relations with Hong Kong and evaluate them for the region’s autonomy from the central authorities of China. If the degree of autonomy is deemed insufficient, Washington will be obliged to impose on Hong Kong the same restrictions that apply now to mainland China. In this case, Chinese companies will lose loopholes for doing business with foreign partners. For the entry into force of the document must be signed by the president.

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