[Hong Kong version of the National Security Law] The United States may suspend the tariff concessions to Hong Kong Chamber of Commerce said it has not heard the industry worried

Financial News

Written by: Xu Shihao, Hu Xueneng

2020-05-28 20:41

The National People's Congress voted to pass the Hong Kong version of the National Security Law. After authorizing the Standing Committee of the National People's Congress to enact relevant laws, it will be listed in Annex III of the Basic Law, which will be promulgated and implemented by the Hong Kong Government. The US government may impose sanctions such as transaction control and asset freeze on mainland and local officials and enterprises. However, some business people think that it has little impact on Hong Kong, and they even say that the older generation "99.9% support" the enactment of the National Security Law.

However, some scholars have reminded that if restrictions such as the freedom of Hong Kong people occur, or foreign investment in Hong Kong will be reduced; property prices will fall by 10%.

The National People's Congress will consider the draft of the "National Security Law for the Port Area", and the international community is concerned about whether Hong Kong can enjoy a high degree of autonomy under the principle of one country, two systems. (Profile picture)

The National People's Congress will consider the draft "Decision" that enacts the legislation of the "National Security Law of the Port Area". International attention is paid to whether Hong Kong can enjoy a high degree of autonomy under the principle of one country, two systems. US Secretary of State Pompeo reported to Congress that Hong Kong no longer enjoys a high degree of autonomy and therefore no longer guarantees Hong Kong ’s special treatment before the return of the country in 1997.

"Reuters" quoted sources as saying that Washington is considering suspending special tariff treatment for Hong Kong's exports to the United States. As one of China's responses to Hong Kong's plan to implement the "Port Area National Security Law", it means that Washington may export goods to Hong Kong. , Levying the same tariffs as the Mainland of China.

Wu Hongbin: I do n’t hear any worries in the industry

Wu Hongbin, chairman of the Chinese Manufacturers ’Association, said that for the time being, he did not hear the industry ’s worries about sanctions. There are still goods exported directly to the United States from Hong Kong, but the number is not large. After the war, the United States imposed additional tariff measures on China, and some companies have set up factories overseas to reduce the impact.

Wu Hongbin said that for the time being, there are no worries in the industry. (Profile picture)

Wu Hongbin also expressed his support for the implementation of the "National Security Law in the Port Area" in Hong Kong, and believed that it would help Hong Kong restore calm. "The National Security Law exists all over the world. Trade wars, social events and epidemics have caused the business community to complain." He described the current situation as " Fell into the abyss on the cliff. "

99.9% of people around you support the National Security Law

Asked about the continuing social events, the big reason is that the government has not responded to the citizens' demands. Wu Hongbin said that during the anti-revision incident, there were "obvious foreign forces interfering", such as "Hong Kong independence" and "recovering Hong Kong", etc. He said that "I don't understand the young people's point of view". Have a stable life, "99.9% of them are older generations around me (National Security Law)."

Li Xiuheng (left) supports the "National Security Act of the Hong Kong District" and believes it will help social stability.

As for the chairman of the Hong Kong Economic and Trade Chamber of Commerce Li Xiuheng, he expressed concern that the United States will no longer export high-tech products to Hong Kong, but he still supports the "National Security Act of the Hong Kong District." Are unknown. "

The Hong Kong version of the National Security Law has passed scholars' claims that foreign investment or reduced investment in Hong Kong

Will the adoption of the Hong Kong version of the National Security Law cause a serious blow to the Hong Kong economy? Li Zhaobo, a senior lecturer at the School of Business Administration of the Chinese University of China, said that depending on how it is implemented, if the central government ’s relevant national security authorities set up agencies in Hong Kong to collect intelligence, the relevant crimes will be enforced by the existing law enforcement agencies in Hong Kong, and may not be " "Worst case" (worst case), but for example, if the personnel of these organizations wanted to arrest the dissidents who intend to stand for election before the Legislative Council elections in September, restricting their personal freedom, I believe it is also a "worst case".

If a "worst case" occurs, Li Zhaobo believes that foreign investment will reduce the proportion of investment in Hong Kong. If a foreign-funded enterprise itself establishes a headquarters in Hong Kong, it may reduce the manpower of Hong Kong. In the property market, property prices fell by about 10%. On the stock market, it should not fall deeper than March.

He believes that the linked exchange rate mechanism should not be affected by this incident. "Because no one has the courage and wisdom to change the linked exchange rate," the mainland economy has "boiled". The linked exchange rate in Hong Kong is effective. The Bureau also has sufficient US dollar support.

Regarding the property market, Li Zhaobo pointed out that Hong Kong ’s own economic weakness, coupled with the adoption of the National Security Law this time, "people will wait and see, and there will be a lot of goods that may reduce holdings", but there is always demand for buildings, "Hong Kong is all "Food", it is not surprising if the current property price drops by another 10%, but there is little chance of a sharp fall. For Hong Kong stocks, he believes the HSI should not fall deeper than the March low.

The United States currently treats Hong Kong differently from China under the "Hong Kong Relations Act" passed in 1992, and regards Hong Kong as an "independent customs zone." After the anti-amendment incident that began in June last year, the US Congress passed the Hong Kong Human Rights and Democracy Act. The State Council needs to review the human rights and democratic situation in Hong Kong every year. Decide whether to continue the most favourable treatment for Hong Kong.

Hong Kong version of National Security Law is highly autonomous