May 30, 2020 "Information Clearing House" - Stranger things have happened.

Everyone was expecting US President Donald Trump to go nuclear by de facto sanctioning China to death over Hong Kong. In an environment where Twitter and the President of the United States are now engaged in open warfare, the rule is that there are no rules anymore.

So in the end, what was announced against China amounted to an anti-climax. 

The US government, as it stands, is terminating its relationship with the World Health Organization (WHO). The geopolitical repercussions are immense and that will take time to sink in. In the short term, something must be blamed for the US’ appalling Covid-19 record, so it might as well be a UN institution. 

Hong Kong’s preferential trade status will also be terminated, but in a hazy future in still undetermined terms. 

Phase 1 of the US-China trade deal still stands – at least for now. Yet there’s no guarantee that Beijing itself won’t start to doubt it.  

The bottom line: “Investors” were duly appeased, for now. Team Trump seems not to be exactly versed in the niceties of Hong Kong’s Basic Law, as the president stressed the “plain violation of Beijing’s treaty obligations with the United Kingdom.” The national security law was blasted as “the latest” Chinese aggression against its own special administrative region.  

Now compare all this with the Two Sessions in Beijing ending the day before, with an intriguing, quite Keynesian performance by Prime Minister Li Keqiang. This was compelling as much for what Li did not say as for what he chose to put on the public record.

Let’s review some of the highlights. Li stressed that the NPC’s resolution putting forth a national security law for Hong Kong is meant to protect “one country, two systems,” and not as an “aggression.”  

Instead of demonizing the WHO, Beijing is committed to a serious scientific investigation of the origins of Sars-Cov-2. “No cover-up” will be allowed, Li said, adding that a clear, scientific understanding should contribute to global public health. Beijing also supports an independent review into the WHO’s handling of Covid-19.