US may limit capital flows to Hong Kong in response to the implementation of the new national security law launched by China

US Treasury Secretary Steven Mnuchin said the US is working on various capital markets including the restriction of capital flow to Hong Kong in response to China’s implementation of national security law.

Mnuchin and his colleagues are considering measures to sanction China from launching the national security law in the city.

The US President Donald Trump ordered a group to study the proposal of 60 days actions in protecting US investors from Chinese companies’ failure. The accounting issue of the Chinese companies will be examined by the President’s Working Group in a detailed report.

Mnuchin expected China to resume its obligation under the phase one trade deal. The deal stated that China has to purchase an addition US$200 billion in US goods in two years from 2017 and also protect the US intellectual property. Zhu Guangyao, a former finance minister and Cabinet adviser, said China would make its promise as they want to have a better relationship with the US.