FAST FIVE: White House Weighs Economic Retaliation Against China As Hassett Warns "All Options Are On The Table"
White House Weighs Economic Retaliation Against China As Hassett Warns “All Options Are On The Table” Tyler Durden Fri, 05/22/2020 – 12:25 While Secretary of State Mike Pompeo slams China over its planned 'National Security' law, which clearly aims to suppress all political dissent and “foreign influence” in Hong Kong, while hinting that the special trade status enjoyed by the city-state might soon be revoked, White House economic advisor Kevin Hassett appears on CNN Friday to play 'bad cop' to Pompeo's 'good cop'.
As Huawei scrambles to find suppliers not based in the US, Hassett insisted that the White House is “absolutely not going to give China a pass” and is already considering any and all forms of economic punishment, including, presumably, more laws to force the de-listing of Chinese companies on US exchanges, or even the cancellation of US debt held by Beijing.
“And that's going to be very costly to China and the people of Hong Kong.
“I think it's coming sooner rather than later.” https://t.co/N8OIBO7aAQ pic.twitter.com/f1y5mZyyYh – CNN Newsroom (@CNNnewsroom) May 22, 2020 In a separate interview with Fox Business, Hassett said China would see “a lot of economic harm” over this decision, and also predicted it would “backfire” against Beijing, and trigger “capital flight” problems in Hong Kong, potentially forcing a devaluation of HKD (much to the delight of one Kyle Bass).
“I would expect that they're going to have serious capital flight problems in Hong Kong, if they follow through this, they will no longer be the financial center of Asia, and that they themselves will pay very very heavy costs,” he added.