Hong Kong’s controversial extradition bill could damage city’s economy, relationship with the US, say economists

Extradition bill may be a ‘tipping point’ in US-Hong Kong relations and and threaten city’s special status

US could see Hong Kong as ‘weak link’ in fight with Beijing over trade, technology

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Anti-riot police officers clash with anti-extradition protesters in Admiralty on Wednesday. Experts say the legislation could potentially damage the city’s economy and its relationship with the US. Photo: Sam Tsang

Published: 12:40pm, 14 Jun 2019Updated: 5:00pm, 14 Jun 2019

A controversial extradition bill that sparked massive protests in Hong Kong this week could potentially damage the city’s economy and its relationship with the United States, analysts and economists said.

Ines Lam, an economist at CLSA, said in a research note that the proposed extradition bill, which would make it easier to send people from Hong Kong to mainland China for trial, could be a “tipping point” in US-Hong Kong relations and threaten Hong Kong’s special status.

US senators Ted Cruz and Ed Markey introduced a bipartisan bill on Thursday to amend the United States-Hong Kong Policy Act of 1992, requiring an evaluation by the US Secretary of State of how Beijing “exploits Hong Kong to circumvent the laws of the United States”.

“The economic impact of the removal of the US-Hong Kong Policy Act is potentially big, as the loss of confidence can set off the withdrawal of foreign investment in Hong Kong businesses and assets,” Lam said.

At least 80 people, including 22 police officers, were injured as protesters blocked major roads in downtown Hong Kong and clashed with police ahead of a legislative session on the extradition bill on Wednesday.