Beijing seems to be moving quickly in a bad to remove the “special status” to the former British Colony as they bought into effect a new law which can give Beijing a means to control and even squish any forms of dissent. Under the special status, U.S businesses enjoy access to China through the autonomous city where bilateral trade flourishes across various parts of the sectors from wine to financial services.
A new US law requires the State Department to certify annually that Hong-Kong enjoys its autonomous status. Washington warned on Thursday that they could react “very strongly” to China’s new restrictions. The latest restrictions could cause issues for more than 1,300 American companies that currently handle business decisions without any imposed restrictions at the moment. Moreover,currently 85,000 U.S citizens live in the Hong Kong since 2018.
As of 2018, the U.S also enjoys an unopposed FDI investments in the count of $82.5 billion which was a direct increase of $1.2 billion. Hong Kong’s investment in the United States stands at $3.5 billion in 2018 to $16.9 billion till date.While Hong Kong’s current autonomy, civil liberties, an easy of access to China make it attractive for international companies a push in the country’s civil laws could tilt that in China’s favors.
“Numerous American companies invest in Hong-Kong because of their special status, its geographical locations and market-based economic systems,” the U.S based China Council said in a statement. “Any change to this status quo would irreparably damage American Global business interests.”
Trade in the amount of $67 billion dollars could be put on immediate hold to reassess interests and viability if Hong Kong were to lose their preferential lower U.S tariff rates.