The top economic official in the White House says China has made (quote) "a huge mistake" passing its new national security law.
In an interview with CNBC Thursday, Larry Kudlow said the people of Hong Kong have been robbed of their freedom.
He added that Washington will not let this go unnoticed and Beijing will be held accountable.
If needed, he said Hong Kong may now be treated the same way mainland China is, implying the U.S. will halt its special trading status with the island.
Regarding the phase one trade deal between Washington and Beijing, Kudlow explained that it will be maintained for the time being.
President Trump who has been sending continued warnings to China is expected to address the issue during a press briefing scheduled for Friday local time.
Trump has been hinting at a strong response, saying earlier that his administration will do something about Hong Kong.
The U.S. was not the only country that slammed the new legislation.
The UK, Australia, Canada and the U.S. released a joint statement scolding Beijing, saying the move would threaten Hong Kong's freedom.
The British foreign minister said the four countries were very concerned.
"We are deeply troubled about this step and we've put out a joint statement, and the decision now lies with China but if it follows through on this legislation and implements it, it would clearly violate the autonomy of the people of Hong Kong, and it would also violate the freedoms set out in the UK-China Joint Declaration, which dates back to 1984."
Other European countries, including France and Germany, also slammed China's bill.
Germany's foreign minister explained that Hong Kong's autonomy shall not be destroyed, adding its freedom of expression shall be upheld going forward.
Kim Hyo-sun, Arirang News.