WASHINGTON / HONG KONG:
U.S. Secretary of State Mike Pompeo told Congress on Wednesday that Hong Kong no longer qualifies for its special status under U.S. law, which could be fatal to its status as a major financial hub.
China has undermined Hong Kong’s autonomy so fundamentally, said Pompeo, that it could not support its recertification for its special trade status before 1997.
China’s plan for new security legislation has sparked protests in the territory, and it is now up to President Donald Trump to decide to end all, all or none of the American economic privileges enjoyed by the territory.
While Pompeo made no recommendations in his statement, Trump has a long list of possible responses, including visas and economic sanctions, David Stilwell, deputy secretary of the State Department for Asia, told reporters. ballast.
People familiar with the matter told Reuters that the Trump administration is considering suspending Hong Kong’s preferential duty rates for exports to the United States as part of its response to the Chinese plan.
Trump could also opt for targeted sanctions against Chinese officials, government entities and companies involved in enforcing the new legislation, according to one of the sources, who spoke on condition of anonymity.
Trump, already at odds with Beijing over the coronavirus trade and pandemic, said Tuesday that Washington is working on a firm response that will be announced before the end of the week.
China’s security proposal, unveiled last week, sparked the first major street protests in Hong Kong in months. Hitting tear gas, water cannons and peppers, Hong Kong police made 360 arrests on Wednesday as thousands of people protested the bill.
Late in the evening, protesters still crowded the sidewalks, chanting full democracy and that Hong Kong is seeking independence from China, saying it is now “the only way out.”
Pompeo said that China’s plan to impose the new legislation was “only the latest in a series of actions that fundamentally undermine Hong Kong’s autonomy and freedoms.
“No reasonable person can claim today that Hong Kong retains a high degree of autonomy from China, given the facts on the ground,” he said.
He said he certified to Congress that Hong Kong no longer guaranteed treatment under US law “in the same way that US law was applied in Hong Kong before July 1997”, when Britain ended its administration of the territory and sent it back to China.
“It is now clear that China is inspired by Hong Kong,” said Pompeo.
The “Hong Kong Human Rights and Democracy Act” approved by Trump last year requires the State Department to certify at least once a year that Hong Kong retains enough autonomy to justify the conditions favorable American trade that allowed it to remain a global financial center.
The United States, the European Union, Britain and others have expressed concern about the legislation, widely seen as a possible turning point for the freest city in China.
CHINA DOES NOT THREATEN HONG KONG’S AUTONOMY
The details of the Hong Kong security bill remain unclear and will not be passed until later. It is intended to fight secession, subversion and terrorism after major troubles last year and could see Chinese intelligence agencies set up in Hong Kong.
Asked to comment on Pompeo’s statement, the Chinese Embassy in Washington reiterated past statements by Beijing and the Beijing-backed government in Hong Kong that security law does not threaten the city’s high degree of autonomy and will be closely targeted.
“With regard to foreign interference in the affairs of Hong Kong, we will take the necessary countermeasures in response,” he said, echoing previous Chinese statements.
On Wednesday, a strong police presence around the Legislative Council of Hong Kong dissuaded the demonstrators from disturbing the debate on a bill which would criminalize the non-respect of the Chinese national anthem. This should become law next month.
(With the exception of the title, this story was not edited by GalacticGaming staff and is published from a syndicated feed.)