The political rift between China and the United States is growing in full force. The National People’s Congress (China’s version of Parliament) officially approved the security law proposed last week, which sparked international outrage. This new law will permit the Chinese authorities to have more control over affairs in Hong Kong.
The so-called autonomous region has been a safe harbor for opponents of the Communist Party of China. Its relative freedom from Chinese influence and close relationship with the massive economy of China previously made Hong Kong an international business hub, but now the territory is caught in a cycle of protests against China.
The United States is expected to implement new sanctions on China as a response to the controversial law. It is unclear if the UN will take any action, as the bill might be in violation of a decades’ old agreement that established Hong Kong’s status as autonomous from China.
Freedom of speech is also becoming an issue in the United States, where Trump is targeting social media with a new proposal. Trump believes the biggest social media in the world favor leftist content and that they suppress conservative talk. Interestingly, the order came after Twitter flagged the US President’s tweets with a fake news warning earlier this week.
The stock markets today remain neutral, holding onto yesterday’s gains. European indices are looking better due to hopes of a coordinated financial stimulus plan for the eurozone.
Last but not least, today we expect several important reports from the United States. Unemployment has been a big topic in that regard, so watch out for the initial jobless claims report, as well as the 4-week unemployment roundup. The durable goods orders and first quarter GDP reports will also be published today and indicate how the American economy has been doing.
