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Inside Out | How hard can Donald Trump hit Hong Kong over the national security law? Not very
- Even if the US levies a 25 per cent tariff on Hong Kong’s exports, that would affect only 0.1 per cent of GDP
- Imposing sanctions on Hong Kong and Chinese officials is easier said than done
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We have often read over the past two weeks how the US plans to revoke Hong Kong’s privileged trade status to punish China for imposing a national security law on the special administrative region.
This is in line with the US habit of using trade measures of one kind or another as punishment or protest against economies inciting its displeasure. But this threat raises a simple question: what are the trade “privileges” that will be revoked, and what will the impact be of this?
US President Donald Trump called on his administration to begin the process of revoking Hong Kong’s special treatment as a separate customs and travel territory from the rest of China, as has been set out in the US’ 1992 Hong Kong Policy Act. Trump also said the US would “sanction [Chinese] and Hong Kong officials directly or indirectly involved in eroding Hong Kong’s autonomy”.
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Secretary of State Mike Pompeo had earlier said this was necessary because Hong Kong’s high degree of autonomy had been undermined.
06:21
Hong Kong and the US: how much do they rely on each other economically?
Hong Kong and the US: how much do they rely on each other economically?
Although Beijing has yet to provide details of its proposed law and how it might be implemented, and Trump has provided neither detail nor a timetable for his measures against Hong Kong, let’s try to work out what exactly is being threatened.
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