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President Donald Trump on Friday said the U.S. is quitting the World Health Organization and is beginning to revoke Hong Kong’s special status, in an escalation of tension with China.
Speaking in the White House Rose Garden, Trump also said the U.S. would move to sanction Chinese officials over what he called the “smothering” of Hong Kong, but the president steered clear of any discussion of reneging on a trade deal between the two countries, or wider sanctions.
U.S. stocks SPX, +0.48% turned positive as he spoke, after having traded lower before the announcement.
Trump also announced entry into the U.S. for some Chinese nationals would be suspended and said the U.S. would “study” the practices of Chinese companies listed on U.S. exchanges.
Trump’s move came amid simmering tensions between Beijing and Washington over China’s management of the coronavirus pandemic, as well as China’s tightening of controls over Hong Kong.
U.S. Secretary of State Mike Pompeo this week declared Hong Kong to be longer autonomous from China, after the country’s legislature approved a resolution imposing national-security laws on Hong Kong.
Trump said he was beginning the process of revoking policy giving Hong Kong special treatment from the U.S., including its preferential treatment as a customs and travel territory separate from the rest of China.
“My announcement today will affect the full range of agreements that we have with Hong Kong, from our extradition treaty, to our export controls and technologies,” said Trump.
Trump has repeatedly accused China of covering up the coronavirus outbreak, saying earlier this month at a Fox News town hall, “I think they made a horrible mistake and they didn’t want to admit it.” Both Trump and Pompeo have claimed there is evidence the virus came from a lab in Wuhan, but neither has shown such evidence. Pompeo has since backed away from the claim.
The president charged that the WHO failed to response to the coronavirus pandemic because China has “total control” over the organization.
Trump and presumptive Democratic presidential nominee Joe Biden, meanwhile, have attacked each other as being too soft on China. Biden has a lead over Trump in national polls ahead of the November election, and has an edge over Trump in several important swing states.
U.S. stocks DJIA, -0.06% on Friday were lower as investors awaited Trump’s China statements, but turned positive as his announcements were seen as less-stringent than feared.
