President Trump announced Tuesday that he has signed a newbill sanctioning Chinese officials in response to Beijing's national security law for Hong Kong, which dramatically curbs the city's political freedoms. He also signed an executive order ending preferential treatment for Hong Kong.

Why it matters: The bill, which will sanction both Chinese individuals interfering in Hong Kong's affairs and the banks that support them, has broad bipartisan support in Congress. Its passage into law is the latest escalation by the Trump administration against the Chinese Communist Party's efforts to strip Hong Kong of its autonomy.

Two White House officials tell Axios they expect China to retaliate against the move, but it's unclear how it plans to do so.

• Shortly after the Senate passed the Hong Kong Autonomy Act earlier this month, China's Foreign Ministry spokesman Zhao Lijian warned that "China will react strongly and the U.S. shall bear all consequences.”
• And on Monday, China hit back against the U.S. for sanctioning Chinese officials over their human rights abuses against Uighur Muslims by banning several prominent lawmakers, including Sens. Marco Rubio (R-Fla.) and Ted Cruz (R-Texas), from entering the country.

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