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Trump-China Feud Is Increasing Risks for Markets and Economy

  • Rising geopolitical tensions could undermine recovery hopes
  • Hong Kong, multinationals at risk in worst-case scenarios
U.S. President Donald Trump returns to the White House on May 27.

U.S. President Donald Trump returns to the White House on May 27.

Photographer: Win McNamee/Getty Images

Bloomberg News

It’s only a matter of time before the Trump administration hits China over a range of grievances. The question for CEOs, investors and economic policy makers is how bad things will get.

U.S. lawmakers moved on two fronts Wednesday, with Secretary of State Michael Pompeo declaring Hong Kong no longer autonomous from China and the House of Representatives authorizing sanctions against Chinese officials for abuses against Muslim minorities. Other bills in the pipeline would target Huawei Technologies Co., Chinese companies listed in the U.S. and banks that do business with Chinese officials who interfere in Hong Kong’s affairs.