US President Donald Trump finally signed the bipartisan supported Hong Kong Human Rights and Democracy Act overnight. A second bill to ban export of crown-control munitions to Hong Kong was also signed. Trump said, “I signed these bills out of respect for President Xi, China, and the people of Hong Kong. They are being enacted in the hope that Leaders and Representatives of China and Hong Kong will be able to amicably settle their differences leading to long term peace and prosperity for all. ”
Republican Senator Marco Rubio, a main driver and sponsor of the bill, said, “In an overwhelming display of bipartisan unity, Congress passed our Hong Kong Human Rights and Democracy Act, and I applaud President Trump for signing this critical legislation into law. I look forward to continuing to work with the administration to implement this law.” Democrat House Speaker Nancy Pelosi said, “If America does not speak out for human rights in China because of commercial interests, we lose all moral authority to speak out elsewhere”.
The Chinese Foreign Ministry said the act “severely infringed on Hong Kong affairs, seriously interfered in China’s internal politics, and gravely violated international laws and the basic principles of international relations”. It added, “it is a blatant move of hegemony that the Chinese government and the Chinese people firmly oppose”. The China-appointed Hong Kong Government also said, “the two acts are unreasonable”, and they “will also send an erroneous signal to protesters, which is not conducive to alleviating the situation in Hong Kong”.
The HKHRDA aims to back Hongkongers in defend of their autonomy, promised by China in the Sino-British Joint Declaration. Hong Kong’s status will be reviewed by the US State Department, annually, to justify continuation of the favorable trading terms. The law also threatens sanctions for human rights violations by Hong Kong Government officials.
Market reactions are so far muted as the main risk remains on outcome of US-China trade deal phase one. Talks are ongoing and no one has eve dropped a hint on when it will be completed.
BoJ Kuroda: YCC would make fiscal policy even more effective
BoJ Governor Haruhiko Kuroda said a mix of fiscal and monetary policy measures is a standard way to support the economy. The challenges Japan is facing, including recent natural disasters and impact from overseas slowdown, “should be better be addressed by government with fiscal policy and structural policies”.
On monetary side, the yield curve control of BoJ, which intends to maintain short- and long-term rates quite low, “would make fiscal policy even more effective”. He added, “which intends to maintain short- and long-term rates quite low, would make fiscal policy even more effective.”