China accuses UK of ‘gross interference’ in Hong Kong affairs
Chinese ambassador to the UK Liu Xiaoming Wednesday accused British ministers of ‘gross interference’ in Hong Kong’s affairs for their defence of the city’s protestors, reported the Financial Times.
“The UK government chose to stand on the wrong side,” Liu said at a press conference in London. “It has made inappropriate remarks not only to interfere in internal affairs of Hong Kong but also to back up the violent lawbreakers.”
British lawmakers and politicians have urged China to honour the 1984 Sino-British Joint Declaration, which outlines the “one country, two systems” principle. Under the declaration, Hong Kong would continue to operate under a capitalist system after being transferred to Chinese sovereign control on 1 July 1997. Hong Kong residents would enjoy rights not seen on mainland China, as well as a semi-autonomous status.
Lu Kang, a spokesman for China’s foreign ministry, told Chinese media that the declaration was “a historical document that no longer has any realistic meaning”. Britain has opposed this statement, arguing that it is a legally binding treaty that continues to be in force.
Since the Umbrella Revolution in 2014, Hong Kong has seen waves of protests against China undercutting their rights and freedoms as guaranteed under the declaration. Hundreds of thousands have taken to the streets in the last month to protest Hong Kong’s proposed extradition bill, which would allow extraditions to mainland China. Protestors worry that China would use the law to supercede Hong Kong’s judicial system.
US stocks close at record high after ECB nomination
S&P rose 0.8 per cent to close at its highest levels of the day Wednesday, following the nomination of Christine Lagarde to the European Central Bank (ECB) presidency, reported the Financial Times. Dow Jones and Nasdaq also hit highs, rising 0.7 and 0.8 per cent, respectively.
Investors expect Lagarde, who is the current managing director of the International Monetary Fund (IMF), to continue current ECB president Mario Draghi’s successful stimulus policies. While at the IMF, Lagarde pioneered loose monetary policy and is expected to push dovish practices. She is also supportive of quantitative easing, one of the ECB’s more unconventional policies.
Lagarde was originally a lawyer and has no formal economics training. This did not prove a problem for her at the IMF, and she was successful in restoring the IMF’s credibility following the Greek debt crisis.
However, the ECB presidency is inherently focused on monetary policymaking, and she will have to compensate for her lack of experience with her excellent negotiation and communication skills.
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