China pledges retaliation against US over Hong Kong sanctions

China on Wednesday said it would retaliate after US President Donald Trump signed into law an act allowing sanctions on banks over Beijing's clampdown on Hong Kong.

The Hong Kong Autonomy Act "maliciously slanders" national security legislation imposed by Beijing on the city, China's foreign ministry said in a statement. 

"China will make necessary responses to protect its legitimate interests, and impose sanctions on relevant US personnel and entities," the ministry said.

Also read: Trump not interested in China trade talks, ends Hong Kong preferential status

Earlier, Trump said he ending trade preferences for Hong Kong and signed into law an act that authorises sanctions on banks over China's clampdown in the international finance hub.

Trump announced that he had issued an executive order, which was not immediately released, in Hong Kong as he predicted decline for the restless city, on which Beijing recently imposed a tough new security law.

"Hong Kong will now be treated the same as mainland China, no special privileges, no special economic treatment and no export of sensitive technologies," Trump said in the White House Rose Garden.

Trump also said he had signed into law the Hong Kong Autonomy Act, which passed quickly in Congress earlier this month as Beijing pushed ahead with the security law.

The new US law authorises sanctions against Chinese officials and Hong Kong police are seen as infringing on the city's autonomy -- and, crucially, any banks that make significant transactions with them.