Stocks Slide After Enraged China Summons US Ambassador To Protest "Vain Attempts" To Punish Beijing

Tyler Durden's Photo
by Tyler Durden
Wednesday, Jul 15, 2020 - 12:08 PM

Here we go in the expected immediate tit-for-tat after President Trump announced Tuesday evening from the Rose Garden that he'll be signing the Hong Kong Autonomy Act, a bipartisan measure to penalize banks that work with Chinese officials found to be interfering in Hong Kong affairs, but most especially the Mike Pompeo's Wednesday morning statement indicating US will impose Visa restrictions on Chinese corporate executives within companies like Huawei who facilitate human rights violations.

China’s Vice Foreign Minister Zheng Zeguang summoned U.S. ambassador to China Terry Branstad Wednesday to make “solemn representations” regarding the executive order signed by President Donald Trump on Hong Kong, the ministry says in a statement, Bloomberg reports.

US Ambassador to China Terry Branstad, via AP.

China's Foreign Ministry issued a statement Wednesday following the announcement that the controversial US punitive measures which indirectly take aim at China over its recent sweeping Hong Kong national security law that seeks to crush pro-independence protests will move forward.

China said it "firmly opposes" the new Hong Kong measures, which Beijing deems a serous violation of international law and norms.

A rush translation of the official statement reads: 

This is gross interference in China's internal affairs and seriously violates international law and basic norms of international relations. China firmly opposes this and strongly condemns it. In order to safeguard its own legitimate interests, China will make the necessary response to the wrong actions of the US, including sanctions against US entities and individuals.

And now the Huawei-related visa restrictions are being further condemned as Washington 'interference' in China national and business affairs. 

* * *

News of China's escalating response sent stocks - which had blissfully ignored all the recent US-Sino tit-for-tat - lower, with the Nasdaq turning red and Dow fading almost all of its gains.