Hong Kong national security law: city awaits Trump’s response, casting shadow over long-term economic status
- China’s move to further absorb Hong Kong will have small direct economic effect, but will damage city’s status as an international hub in long term, analysts say
- Chill viewed as a continuation of a tough period for foreign business, setting up a ‘gradual diminution of Hong Kong as an economic centre for south China’
Former White House officials said that the most likely immediate scenario is that US President Donald Trump approves a “variety” of sanctions, potentially on both Chinese and Hong Kong officials, by the end of the week in response to China’s national security law for Hong Kong.
However, “the nuclear option is certainly on the table”, said a former senior Trump administration official, which would see Hong Kong’s status as a region apart from the rest of China removed at a later date, leaving the city vulnerable to trade war tariffs, technological export controls, visa and travel restrictions and greater financial sector scrutiny.
“Coming out and decertifying Hong Kong’s autonomy is not the hard decision,” said Evan Medeiros, who served as former president Barack Obama’s top adviser on the Asia-Pacific and who confirmed that he would have done the same. “The hard work comes now, which is how you implement it.”
Hong Kong cannot be replicated, the unique density of professionals, the transparency of the system, the rule of law, the kind of debate possibilities, the openness ... many of us it’s being challenged right now