China hit back at the White House on Monday by announcing sanctions on U.S. lawmakers, government officials, and heads of non-governmental organizations, saying the decision came in direct response to Washington’s latest action over Hong Kong.
The announcement came from Guo Jiakun, spokesperson for China’s foreign ministry, who said China “strongly condemns” the penalties issued by the U.S. government last month. Guo warned that “any wrong action taken by the U.S. side on the Hong Kong-related issue will be met with resolute and reciprocal counteraction by the Chinese side.”
According to Reuters, the original sanctions from Donald Trump’s administration had targeted six Chinese and Hong Kong officials. That triggered immediate retaliation from Beijing, which has been locked in multiple disputes with the United States since Trump returned to office.
Guo said the behavior of American politicians toward Hong Kong was “egregious,” and China would no longer tolerate it. The new penalties will affect several U.S. citizens involved in Hong Kong-related activities, though the ministry didn’t name names.
On the same day China imposed the sanctions, the People’s Bank of China decided to keep its loan prime rates unchanged. The one-year rate stayed at 3.1%, and the five-year rate held at 3.6%, both matching economists’ predictions.
These rates are used to price most home and business loans in the country. By holding rates steady, Beijing signaled it’s still waiting to see how Trump’s trade war with China plays out before taking steps to stimulate the economy.
Though inflation is still low and tariffs are starting to weigh on growth, the central bank didn’t move. Economists expect that if the trade pressure from Washington gets worse, more monetary easing will likely happen in the second half of the year. For now, the central bank is choosing to stay put. There’s growing concern that Trump’s policies could push China into a deeper economic slowdown if no action is taken soon.
Asia markets react as China holds rates and tensions rise
Markets across the Asia-Pacific were mixed Monday as investors tried to make sense of Trump’s latest move and China’s reaction. The CSI 300 index in mainland China inched up by 0.33%, ending at 3,784.88 after the People’s Bank of China confirmed its decision on rates. That gain came even as tensions between Beijing and Washington dragged on the yuan, which has been under pressure lately.
Elsewhere, the picture was uneven. In India, the Nifty 50 index rose 1.32%, and the BSE Sensex climbed 1.35% by early afternoon. In Japan, the story was the opposite. The Nikkei 225 dropped 1.30%, finishing at 34,279.92, while the broader Topix index closed down 1.18% at 2,528.93. South Korea’s Kospi gained 0.2% to reach 2,488.42, but the smaller Kosdaq index fell 0.32% to 715.45.
Markets in Australia and Hong Kong were closed for the Easter holiday, so no trading happened in those regions.
On the global stage, all eyes stayed locked on Trump’s economic policy, which has sent shockwaves through the financial system. Last week, Trump said the Federal Reserve should cut interest rates again, and he publicly attacked Fed Chair Jerome Powell, saying that Powell’s firing “cannot come fast enough.” Trump’s comments came right after Powell warned that continued trade tensions could make it harder for the Fed to meet its goals for controlling inflation and supporting growth.
That statement rattled the markets and was followed by losses across the major U.S. indexes. All three benchmarks ended the week in the red. The S&P 500 managed a small gain on Thursday but still closed the short trading week 1.5% lower overall. The Dow Jones Industrial Average and the Nasdaq Composite both posted their third straight losing sessions, each sliding more than 2% over the course of four trading days.
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Source: https://www.cryptopolitan.com/china-sanctions-on-us-lawmakers-and-ngos/