US President Donald Trump’s signing into law of the HK Human Rights and Democracy Act this week, after it received near-unanimous support in Congress, underlines the extent to which “standing up” to China has become a mainstream, bipartisan position in the US. This political rift between the US and China will make it hard to avoid further decoupling in the coming years. Meanwhile, in China, local governments have been given the green light to start making use of their 2020 bond issuance quotas as soon as possible. But as efforts to front-load issuance earlier this year show, this is no guarantee of faster infrastructure investment and doesn’t change our view that the bulk of fiscal easing this cycle has already taken place.
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