CCP National Security Law destroys Hong Kong. The US House legislates to address current situation.

Summary

The script highlights the significant impact of China's National Security Law on Hong Kong since 2020, resulting in the erosion of its freedoms and democratic structure. The U.S. House of Representatives responded by passing a bill to review the special treatment of Hong Kong's trade offices in the U.S. Economic data shows a sharp decline in tourism, retail, and overall business activity in Hong Kong, leading to widespread shop closures. The script also discusses Hong Kong's growing economic dependency on China and the departure of foreign companies, affecting its status as an international financial center.

Takeaways

• 🇨🇳 The Chinese government implemented the National Security Law in Hong Kong in 2020, which has severely impacted Hong Kong's freedom and democracy.
• 🇺🇸 The US House of Representatives passed the Hong Kong Economic and Trade Office Accreditation Act, threatening the closure of Hong Kong's offices in the US.
• ⛔ The bill allows the US President to close Hong Kong's offices if it is determined that the region no longer enjoys a high degree of autonomy.
• ⚠️ The US Department of State issued a risk warning for citizens and businesses about personal safety and legal risks in Hong Kong due to the National Security Law.
• 💼 Hong Kong’s economy has been deteriorating since 2020, with declines in retail and catering industries and widespread business closures.
• 📉 Retail sales in Hong Kong dropped by 11.8% in July, with luxury goods experiencing the largest decline.
• 🚶‍♂️ Many Hong Kong residents now travel to mainland China for shopping, contributing to economic challenges in Hong Kong.
• 🏙️ Hong Kong’s status as an international financial center has weakened, with a decline in foreign companies and expats, and an increased presence of Chinese businesses.
• 📊 The number of regional headquarters in Hong Kong has fallen to a record low, reflecting the withdrawal of foreign capital and companies.
• 🤔 Hong Kong is becoming more economically dependent on China, with expectations of even greater reliance in the next decade.

Q & A

What prompted the US House of Representatives to pass the Hong Kong Economic and Trade Office Accreditation Act?

The US House of Representatives passed the act in response to China's implementation of the National Security Law in 2020, which significantly reduced Hong Kong's freedom and democracy.

What could happen to Hong Kong's Economic and Trade Offices in the US according to the new bill?

The bill allows the US Secretary of State to review Hong Kong's Economic and Trade Offices in Washington, New York, and San Francisco. If it is determined that Hong Kong no longer enjoys a high degree of autonomy, the US President has the right to close these offices within 180 days.

What is the US government's position on the Hong Kong government's protection of human rights and the rule of law?

The bill specifies that the US government shall no longer describe the Hong Kong government as an institution that protects the rule of law or human rights in cooperation or agreements with the Hong Kong Economic and Trade Office.

What risks has the US government warned American citizens and businesses about when dealing with Hong Kong?

The US government has warned American citizens and businesses of personal safety and legal risks stemming from the National Security Law implemented in Hong Kong in 2020 and Article 23 of the Basic Law, which includes vague provisions such as crimes involving state secrets and espionage.

How has the National Security Law affected Hong Kong's economy since its implementation?

The law has led to a decline in Hong Kong's economy. The retail and catering industries have suffered, with many shops closing, particularly due to high rents and reduced tourist traffic. The number of foreign companies setting up regional headquarters has also decreased.

What economic impact has been observed in Hong Kong's tourism and retail sectors?

Retail sales in Hong Kong fell by 11.8% in July 2023, with luxury goods like jewelry experiencing the largest decline (25%). The number of tourists has dropped, and many Hong Kong residents prefer to shop in mainland China, further reducing local consumption.

How has the business environment in Hong Kong changed for foreign companies?

Foreign companies and expats have been leaving Hong Kong, and Chinese companies and people are filling the vacancies. This shift has eroded investor expectations, leading to a decline in the number of regional headquarters and employees in Hong Kong.

What role did Xi Jinping’s policies play in Hong Kong’s economic downturn?

Xi Jinping’s tightening control over Hong Kong, including the enforcement of the National Security Law, has led to an erosion of freedom and democracy in the city. His policies have discouraged foreign investors and reduced Hong Kong's appeal as an international financial center.

Why did Hong Kong tycoon Li Ka-shing begin withdrawing his investments from mainland China?

Li Ka-shing started divesting from mainland China in 2013 after failing to secure a meeting with Xi Jinping. Rumors suggest that his earlier project in Fujian province, which caused damage to historical sites, embarrassed Xi Jinping, leading to a strained relationship between them.

How has the status of Hong Kong as an international financial center changed?

Hong Kong has lost much of its status as an international financial center. Foreign investors are leaving, and the city has become increasingly dependent on China. Financial services, a key sector of Hong Kong’s economy, have been eroded due to the political and legal changes.