Political situation
Author: Zheng Baosheng
2020-12-08 23:21
Last update date: 2020-12-08 23:21
The Heritage Foundation, which has always rated Hong Kong as the world’s freest economy, only downgraded Hong Kong to the second place in the world last year, and praised Hong Kong’s free economic performance, published the latest research article saying that China’s implementation of the National Security Law in Hong Kong, "will be Hong Kong The beginning of the end as the world's leading financial and trade center."
The Heritage Foundation article stated that there are about 9,000 foreign-funded companies in Hong Kong that have established regional headquarters in Hong Kong, of which about 1,300 are American companies. These companies are assessing the threats posed by the National Security Law and have begun to withdraw from Hong Kong, especially collecting and managing data. Technology company.
The Heritage Foundation pointed out that some technology companies have withdrawn from Hong Kong. For example, Naver, the parent company of South Korean communications software LINE, moved its data center from Hong Kong to Singapore.
(Reuters)
The international media are also assessing whether they need to leave Hong Kong because of "widespread loss of media freedom." "They worry that if reports run counter to China's national interests, they may be punished under the National Security Law."
The New York Times has moved some of its Hong Kong offices to Seoul, and the Wall Street Journal is also considering relocation.
The article cited a survey conducted by the American Chamber of Commerce in Hong Kong, stating that among the 154 members, about 36% of the companies plan to move their funds, assets or businesses out of Hong Kong.
The Heritage Foundation said that as companies’ awareness of the risks of the National Security Law has increased, Hong Kong’s financial market “has clearly weakened its attractiveness to listed companies, investment banks and institutional investors outside of China”.
The article mentioned that many financial infrastructures have another operating location in the Asia-Pacific region, which makes it easy to relocate their Hong Kong business. For example, UBS and Citi have set up offices in New Zealand in the past few years, and Citi, Bank of America and France and Pakistan are all in Singapore. There are important departments.
The Heritage Foundation pointed out that Singapore is the best example of a company choosing another base after it withdraws from Hong Kong. It also said that the intervention of the US government is not important in the process of relocating from Hong Kong, and companies will make their own choices.
(Reuters)
The Heritage Foundation ranked Singapore as the freest economy in 2019. The article pointed out that the local area is the best example of companies choosing alternative bases after they withdraw from Hong Kong.
According to the analysis of the Heritage Foundation, China will still stick to its own footsteps in the face of this situation. "It will be a tragedy for the people of Hong Kong. It also marks the desire for China to be more politically and economically compatible with the West in the future. The thinner it is."
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