President Trump signaled a crackdown on China may be coming sometime this week for its proposed national security legislation that would curb Hong Kong's autonomy.
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"We’re doing something now," Trump said Tuesday during an event for seniors in the Rose Garden. "I think you’ll find it very interesting but I won’t be talking about it today, I’ll talk about it over the next couple of days.”
A source familiar with the discussions told FOX Business the White House is looking at a variety of different policy options regarding Hong Kong along with sending a message to China that the U.S. is taking the matter "very seriously."
White House Press Secretary Kayleigh McEnany told reporters Tuesday the president is "displeased with China’s efforts and...it’s hard to see how Hong Kong can remain a financial hub if China takes over."
The controversial measure goes against Hong Kong's Basic Law, which says such proposals must be passed by the city government. Critics argue the legislation would override the city's “one country, two systems” principle, which has been in place since the colony was handed over to China by Britain in 1997.
Carrie Lam, Hong Kong's chief executive, has pushed back against criticism of the legislation, saying there's “no need for us to worry” about a potential threat to the city's civil rights.
“Hong Kong has proven that we uphold and preserve those values,” Lam said. “Hong Kong needs this piece of legislation for the bigger benefit of the great majority of Hong Kong people.”
Chief White House economic adviser Larry Kudlow told FOX Business’ Stuart Varney on Tuesday he believes China imposing the law would be a mistake.
"I think China is making a big mistake, frankly," Kudlow said. "They're supposed to have one country and two systems, and now we're seeing an attempt, I think, to have one country and only one system."
Kudlow added that the United States is willing to cover the cost for American companies overseas in China to bring their supply chains and production home.
"We welcome any American companies in Hong Kong or China mainland, we will do what we can for full expensing and pay the cost of moving if they return their supply chains and their production to the United States," Kudlow said.
The comments come just days after thousands took to the streets of Hong Kong on Sunday to protest the legislation.
The Associated Press contributed to this report.