At the Koon Chun Sauce Factory workers are scrambling to cover hundreds of thousands of bottles with new "Made in China" labels as the popular Hong Kong brand falls victim to spiraling diplomatic tensions
Stock futures in Europe and the US rose along with equities in Asia on signs of a thaw in US-China tensions, with investors also looking ahead to a policy speech by Federal Reserve Chair Jerome Powell later in the week.
China imposed sanctions on 11 US citizens including legislators on Monday in response to the US imposition of sanctions on 11 Hong Kong and Chinese officials accused of curtailing political freedoms in the financial hub.
China announced the suspension Tuesday of Hong Kong's extradition treaties with Canada, Australia and Britain in a tit-for-tat move following similar decisions by those countries over a controversial new security law.
China threatened a “forceful counterattack” on Tuesday in response to Britain’s announcement that it would suspend its extradition treaty with Hong Kong following Beijing’s introduction of a national security law for the former British colony.
The number of people around the world who have died as a result of the coronavirus has passed the 600,000 mark as countries from the US to South Africa to India struggle to contain infections. Hong Kong also warned of a resurgence in the virus as it issued tougher new rules on the wearing of face masks.
China said on Wednesday it would retaliate after US President Donald Trump ordered an end to preferential trade treatment for Hong Kong and signed legislation allowing sanctions over Beijing's enactment of a security law in the semi-autonomous city.
China promised to take "all necessary countermeasures" if the United States pressed ahead with legislation penalizing banks doing business with Chinese officials who implement Beijing's draconian new national security law on Hong Kong.
Hong Kong police fired water cannon and tear gas and arrested more than 300 people on Wednesday as protesters took to the streets in defiance of sweeping security legislation introduced by China that critics say is aimed at snuffing out dissent, Reuters reported.