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US-China trade war
Opinion
SCMP Editorial

Opinion | America must get its facts right on Hong Kong

  • The city is too important to both Washington and Beijing to be caught up in the trade war; it cannot be used as a bargaining chip

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Hong Kong is the US’ 19th biggest trading partner. Photo: AFP

The focus United States President Donald Trump has put on China with his stepped-up rivalry has also brought greater attention to Hong Kong. With the trade war and efforts to limit Chinese technology and influence, the city’s special trading status with America was bound to be scrutinised more than usual during an annual assessment. Concerns about “one country, two systems” were expressed, but the partnership has been kept intact. The decision is understandable; Washington needs the city as much for its importance to trade and business as being a meeting point in which to better understand Beijing.

For some in the US, that may not be apparent; the greatest worth of Hong Kong would seem to be as a bargaining chip in negotiations with China. But reality says otherwise, there being no better common ground from which to take stock of circumstances. Hong Kong is also the US’ 19th biggest trading partner and in 2017, it had the biggest bilateral surplus in the world with US$34.7 billion. Many of the 1,400 American companies in the city use it as their regional base.

Hong Kong has to be ever-mindful of that; the 1992 US-Hong Kong Policy Act gives the city special status within China, enabling separate treatment on issues including trade, the judiciary and politics. An aspect of the agreement means that Washington is able to voice its opinion on progress of “one country, two systems” and if matters are not to its liking, can revoke its link. In its latest report, it kept the status quo, but contended the city’s autonomy had been “diminished” by what it characterised as increasing interference from Beijing, a charge which the foreign ministry’s representative in the city rejected as amounting to meddling in local affairs. The central government is bound to respond in such a way out of concern for sovereignty, and stability.

What the US says about Hong Kong should be of interest to Beijing; whether accurate or not, it gives insight into feelings towards China. All benefit from the business and investment from American companies based in the city. But Washington needs to ensure that its information is comprehensive and correct and to ensure that, it has to be open to a wide spectrum of views, not just those from a particular side. American officials would be wise to act or speak only after getting the facts straight.

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Hong Kong values its role as Asia’s world city and to maintain that position, it needs to ensure stakeholders have good faith and confidence in what it does. It needs to lobby Washington and Beijing to ensure its special status with the US remains in place. The city is too important to both to be caught up in the trade war; it cannot be used as a bargaining chip.

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