Hong Kong government hits back after US report warns Beijing’s ‘encroachment’ on city’s freedoms could erode its status as global business hub and affect import of American technology

US-China Economic and Security Review Commission cites joint checkpoint arrangement, anthem law and ban on separatist party as examples

Raises observation that city is ‘losing the unique characteristics and legal protections that make it important to US interests’

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Local football fans hold up the Hong Kong flag during a match against Malaysia in Hong Kong. A new law that punishes disrespect for China's national anthem with up to three years' imprisonment may also apply to Hong Kong and Macau, state media reported. Photo: Anthony Wallace

Published: 8:00pm, 14 Nov 2018Updated: 12:56am, 15 Nov 2018

The Hong Kong government has expressed regret over “biased conclusions and unfounded accusations” after a body advising the United States Congress said Beijing’s “encroachment” on the city’s political system could diminish its standing as a global business hub and affect the export of American technology to the city.

In its latest report, the US-China Economic and Security Review Commission recommended an assessment of the country’s export control policy on technology “as it relates to US treatment of Hong Kong and China as separate customs areas”.

The report also accused the Chinese government of taking “additional steps toward undermining Hong Kong’s legal autonomy”. It cited as an example the controversial joint checkpoint arrangement allowing mainland Chinese authorities to operate in the Hong Kong terminus of the high-speed cross-border rail.

Under the so-called co-location arrangement, passengers clear both Hong Kong and mainland border checks at the West Kowloon terminus, meaning mainland laws have been enforced on Hong Kong soil for the first time.

“Beijing facilitated a controversial rail terminal project that for the first time institutes mainland law in a small portion of the territory. Beijing also passed a National Anthem Law that makes disrespecting China’s national anthem a criminal offence, and compelled Hong Kong to pass similar legislation,” the report stated.