SCMP report

Congress passed the Hong Kong Human Rights and Democracy Act yesterday and Trump is expected to sign the bill shortly.

The SCMP reports that Beijing is watching closely. While they fully expect that he won't veto the bill, Chinese leaders don't want to see Trump parading the bill in front of reporters:

While US President Donald Trump is not expected to veto the bill, which enjoys broad bipartisan support, even the symbolic aspects may carry an extra significance - with a high-profile signing ceremony likely to further anger the Chinese government.

The report says that in a worst-case scenario China would halt trade talks temporarily; or fight and talk alternately.

The report has sparked some US dollar buying on risk aversion.