The U.S. Congress should enact legislation that would suspend the special economic status Hong Kong enjoys under U.S. law should China deploy forces to crush protests in the territory, a congressional advisory body said on Thursday.

The U.S.-China Economic and Security Review Commission (USCC), which is tasked with monitoring the national security implications of U.S. relations with Beijing, issued the call in its annual report among a series of tough proposals reflecting a "markedly more confrontational" relationship.

It said that, with Beijing seeking to build a "world class" military and warning of its willingness to take military action to defend its interests, Washington "must plan for worst-case scenarios, while trying to achieve the best ones."