China on Saturday slammed the United States for imposing “barbarous” sanctions in response to Beijing’s crackdown in Hong Kong, capping a dramatic week of deteriorating relations between the world’s two biggest economies.
In the toughest US action on Hong Kong since China imposed a sweeping new security law on the territory, Washington on Friday sanctioned a group of Chinese and Hong Kong officials — including the city’s leader Carrie Lam.
Twin offensive ahead of US elections
The move came after President Donald Trump’s administration forced Chinese internet giants TikTok and WeChat to end all operations in the US, in a twin diplomatic-commercial offensive set to grow ahead of the US presidential election in November.
China on Saturday criticised the sanctions as “barbarous and rude”.
“The ill intentions of US politicians to support people who are anti-China and messing up Hong Kong have been clearly revealed,” Beijing’s Liaison Office in Hong Kong said in a statement.
US House passes bill Wed to sanction #China banks over #HongKong. House of Representatives’ legislation to penalize banks doing business with Chinese officials who impose #nationalsecurity law for what @SpeakerPelosi called a “brutal, sweeping crackdown”. https://t.co/ZhbpzebPfI
— Eunice Yoon (@onlyyoontv) July 2, 2020
The Treasury Department announced it was freezing the US assets of Chief Executive Carrie Lam and 10 other senior officials, including Luo Huining — the head of the Liaison Office.
It accused the sanctioned individuals of being “directly responsible for implementing Beijing’s policies of suppression of freedom and democratic processes”.
The move criminalises any US financial transactions with the sanctioned officials.
In a short statement, Luo said he welcomed the blacklisting.
“I have done what I should do for the country and for Hong Kong,” he said. “I don’t have a dime’s worth in foreign assets.”
The Hong Kong government described the sanctions as “shameless and despicable”.
A city government spokesman said in a statement that Washington was using “Hong Kong as a pawn in its ploy to create troubles in China-US relationship”.
Sanctions follow Beijing security law
Beijing’s security law was imposed in late June, following last year’s huge pro-democracy protests in Hong Kong, sending a political chill through the semi-autonomous city.
Since then, authorities have postponed elections, citing the coronavirus pandemic, issued arrest warrants for six exiled pro-democracy activists and launched a crackdown on other activists.
US Secretary of State Mike Pompeo said the security law violated promises made by China ahead of Hong Kong’s 1997 handover that the city could keep key freedoms and autonomy for 50 years.
“Today’s actions send a clear message that the Hong Kong authorities’ actions are unacceptable,” Pompeo said in a statement.
The US measures come three months ahead of the November election in which Trump, who is behind his rival Joe Biden, is campaigning hard on an increasingly strident anti-Beijing message.
As public disapproval has grown for his handling of the pandemic, Trump has pivoted from his previous focus on striking a trade deal with China to blaming the country for the coronavirus crisis.
US sanctions China: tech firms banned from operations in the US
On Thursday, Trump made good on previous threats against WeChat and TikTok — two Chinese-owned apps with major audiences that US officials say pose a national security threat.
In an executive order, Trump gave Americans 45 days to stop doing business with the platforms, effectively setting a deadline for a potential, under-pressure sale of TikTok to Microsoft.
The version of the #HongKong Autonomy Act that the House just passed includes minor technical changes to the bill @SenToomey and I passed last week. Tomorrow, we’ll take to the floor and ask the Senate to pass the new version immediately. https://t.co/4z3PBIpHmO
— Senator Chris Van Hollen (@ChrisVanHollen) July 1, 2020
The move also threw into doubt the American operations of WeChat’s parent firm, Tencent, a powerful player in the video game industry and one of the world’s richest companies.
China condemned the move as “arbitrary political manipulation”.
The new restrictions sent Tencent shares tanking as much as 10 percent at one point in Hong Kong trade on Friday, wiping almost $50 billion off its market capitalisation.
Trump’s order claimed TikTok could be used by China to track the locations of federal employees, build dossiers on people for blackmail and conduct corporate espionage.
TikTok has repeatedly denied sharing data with Beijing.
WeChat is a messaging, social media and electronic payment platform and is reported to have more than a billion users, with many preferring it to email.
The latest US actions follow a protracted battle over Huawei, the Chinese network and smartphone giant accused by the Trump administration of being a tool for espionage.
AFP with additional input by GVS News Desk