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China’s move in Hong Kong is going to be very bad for the Chinese economy, White House Council of Economic Advisers Chairman Kevin Hassett said on Friday.

Overnight, China’s ruling Communist Party proposed a controversial national security law for Hong Kong that is seen as Beijing looking to strengthen its hold over the region.

Commenting on the economic outlook, Hassett said he expects the economic growth in the third quarter to be the highest in the US history.

Market reaction

These comments had little to no impact on market sentiment. As of writing, Wall Street’s three main indexes were down between 0.35% and 0.68%.