Two Sessions 2020: national security law adds fresh risks to Hong Kong’s status as business hub, commerce chambers warn
- City could lose trade privileges with US if proposed legislation inflames tensions between Beijing and Washington, American lobby group says
- Other foreign business chambers call on administration to clearly spell out how Hong Kong’s autonomy will be preserved if legislation is enacted
The proposed national security law for Hong Kong could undermine the city’s status as a business hub and worsen risks it already faces from the economic war between China and the United States, an influential trade group has warned.
The legislation could also further inflame tensions between the two superpowers, possibly leading to the city losing the trade privileges enshrined in the US-Hong Kong Policy Act of 1992, according to the American Chamber of Commerce in Hong Kong (AmCham).
Other business groups expressed similar fears, saying an erosion of the “one country, two systems” principle that guarantees the city a high degree of autonomy from mainland China would put its role as a financial centre in jeopardy.
“Definition and details are really necessary to alleviate a fear factor developing in the business community,” AmCham president Tara Joseph said. “A Beijing-inspired national security law leaves open an interpretation of how such an act will be enforced.
“How will it affect the rule of law? Will it mean limiting online, press and personal freedoms? People may also ask whether Beijing’s concern over foreign interference adds an element of risk to foreigners living here.”
Enacting “a vaguely defined” national security law would create hurdles to recruiting and retaining top talent in an environment already affected by ongoing social unrest and the coronavirus pandemic, Joseph warned.