The US is forgetting the differences between Hong Kong and China. Let’s remind them
Jack Lange and Tara Joseph warn that Hong Kong could easily have faced heavier sanctions from a US that no longer clearly sees its distinctions from the mainland. So it is vital for the government and business community to emphasise what makes it unique
At this juncture – when the US’ appreciation of the distinctions between mainland China and Hong Kong is more important than ever, but shows signs of dimming in the fog of conflict – we cannot let that opportunity pass.
There are widespread objections to Trump’s use of tariffs to address these issues. But the issues themselves are deep, structural and will not be resolved soon – even if Trump declares victory and moves on.
Watch: ‘Biggest trade war in economic history’ begins between US and China
There were indications that, in the internal debate over that proposal, what would constitute “Chinese” investment for purposes of the restrictions – and how Hong Kong should be treated – was explicitly addressed. One may imagine that, in this conversation, there was a vigorous school of thought advancing the proposition that Hong Kong’s autonomy has been so hollowed out by an assertive mainland that it is no longer constructive to discern where the mainland ends and Hong Kong begins.
In the end, Trump decided to rely on a revised Committee on Foreign Investment in the United States (CFIUS) framework, with expanded authorities not specifically targeted at China but undoubtedly applied most energetically in that direction. The question of what is “Chinese” will continue to arise, but in a less obvious and explicit manner than if new restrictions limited to Chinese investment had been imposed.
These examples illuminate the risk of Hong Kong being drawn closer to the centre of US-China trade battles. They illustrate the scepticism in influential pockets of Washington about how distinct Hong Kong is within the “one country, two systems” model.
Fortunately, there is also a willingness to hear about the special qualities of Hong Kong, and this story resonates deeply with the American psyche. AmCham Hong Kong has experienced this in our own interactions with Washington. The level of attentiveness to on-the-ground views and American businesses’ experiences – both on the mainland and in Hong Kong – has risen as the prospect of a trade war with China has grown more imminent.
Certainly, it is challenging to tell the Hong Kong story effectively to a distant, distracted audience. The difficulties are exacerbated by the US media coverage of Hong Kong, which lacks balance and perspective, even as media outlets rely heavily on Hong Kong as a base of operations because of the freedom and openness it offers.
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Attention tends to concentrate almost exclusively on the political controversies and frustrations around Hong Kong’s democratic development and perceptions of weakened will to defend Hong Kong's political autonomy from mainland encroachment – legitimate issues, but too often glibly conflated with a presumed decay of the core values that define Hong Kong.
Hong Kong continues to have a robust and hearty infrastructure of values, practices and institutions that could not contrast more starkly with those of the mainland system. At a time of intensified competition with a China that has not evolved into the more open society many hoped for, the US should celebrate and encourage the Hong Kong difference. It is in American's interests to ensure that this struggle does not result, either deliberately or carelessly, in Hong Kong being shoved under the bus.
That is not a foregone conclusion. Much depends on our ability to communicate the importance that Hong Kong’s special status has to us and our businesses. AmCham Hong Kong is pursuing that mission with a sense of both opportunity and urgency, and a hope that other stakeholders in Hong Kong’s future will embrace it in the same spirit.
Jack Lange, an international lawyer based in Hong Kong for the past 25 years, is chairman of the American Chamber of Commerce in Hong Kong. Tara Joseph, a former journalist, is president of AmCham Hong Kong