Economics

U.S. Challenge in Penalizing China: Hurt Beijing, Not Hong Kong

  • But administration has a range of options it can choose from
  • Hassett says China move will cause serious harm to its economy

A member of the Democratic Party holds a sign as a police officer stands guard during a protest in front of the Liaison Office of the Central People's Government in Hong Kong on May 22.

Photographer: Paul Yeung/Bloomberg
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The Trump administration has promised strong action against China over its national security law in Hong Kong, but its options may be limited because any harsh penalties aimed at Beijing would likely also harm both Hong Kong -- and the U.S.

While Secretary of State Michael Pompeo indicated Friday that the U.S. could reconsider Hong Kong’s special trade status, taking such broad action risks causing harm to U.S. interests. The administration potentially could take a narrower approach, such as sanctioning individuals or businesses involved in curtailing Hong Kong’s democracy, or by maintaining special treatment of the territory for sensitive technologies.