The American Chamber of Commerce voices concern over Hong Kong Human Rights and Democracy Act
- Legislation to support the city’s democratic freedoms by putting pressure on Beijing is due for a floor vote in the House of Representatives next month
- The American Chamber of Commerce warns that some of the sanctions it stipulates could harm both the US and Hong Kong
An influential American business group on Friday warned of unintended consequences from US legislation intended to support Hong Kong’s democratic freedoms by putting pressure on Beijing, while saying it agreed with the bill’s overall objectives.
The American Chamber of Commerce in Hong Kong (AmCham), which has about 1,400 members, revealed for the first time its stance on the proposed Hong Kong Human Rights and Democracy Act, a bill that edged closer to becoming law on Wednesday, causing Beijing to rebuke the US for trying to interfere in its domestic affairs.
AmCham said it supported the motivations and objectives of the proposal, saying it aims to reinforce the values of freedom and openness upon which the city’s success depends, and the fundamental principle of “one country, two systems”.
However, it warned that some sanctions the bill stipulates, against officials deemed to be acting against those values, could harm both the US and Hong Kong.
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“We fear [it] could have unintended, counterproductive consequences, including on American business and its ability to continue exercising a strong positive influence in favour of Hong Kong’s traditional core values,” AmCham said.
“We hope that parties to the debate will not lose sight of Hong Kong’s unique circumstances and its extraordinary, continuing achievements as a bastion of free expression, free flow of information, free markets, individual liberty, rule of law and judicial independence.”
The bill, which was introduced in June and was passed at House and Senate committees on Wednesday, is due for a floor vote in the House of Representatives in October.
US President Donald Trump told the UN General Assembly in New York on Tuesday that his administration was “carefully monitoring” the political storm in the city, which has been gripped by anti-government protests since June. The Hong Kong government criticised Trump, saying he was politicising the city’s trade amid the ongoing US-China trade war.
The proposed legislation is intended to act as an amendment to the US-Hong Kong Policy Act of 1992, which treats the city as separate from China for trade purposes, keeping US business, technology transfer, cultural exchanges and visa arrangements with the city intact after its 1997 handover from Britain to China.
AmCham said that, despite continuing controversies and challenges, Hong Kong remained a shining beacon of openness and social values that it shares with America. And the policy act had “stood the test of time,” it said.
The chamber pointed out that some amendments to the policy act, to reflect ongoing concerns about the city’s autonomy and supplement the principles of accountability embodied in the act, could be beneficial.
But it had reservations about certain provisions of the pending legislation.
AmCham raised concerns over possible export controls and sanctions. If the existing system for export control reporting between Hong Kong and the US were to change, it said, cooperation could be harmed. This is partly because Hong Kong serves as an important transshipment hub for the US.
It was also concerned about economic sanctions and visa bans, which it deemed controversial tools of US foreign policy, saying any imposition could jeopardise the city’s reputation as a global financial centre with the rule of law.
Hong Kong was set to enter its 17th week of protests on Sunday, a wave of unrest sparked by opposition to an extradition bill that could have transferred fugitives to mainland China, where a fair trial is not guaranteed, according to opponents. The Hong Kong government announced on September 4 it would formally withdraw the extradition bill.
