U.S. sanctions on Hong Kong official Ren Zhigang believe that only at the official level: Biden's views on Hong Kong have subtle changes

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Written by: Zhu Haiqi

2021-04-04 11:46

Last update date: 2021-04-04 11:46

The two major powers of China and the United States are fighting each other, and Hong Kong has become the eye-catcher among them.

The United States has imposed sanctions on Hong Kong officials earlier. Ren Zhigang, a member of the Executive Council and former president of the Monetary Authority, said that the newly appointed US President Biden and former President Trump have a subtle difference in their views on Hong Kong. They still believe in Hong Kong’s common law and private property rights. In particular, it is mentioned that Hong Kong's financial system is independent of the Mainland. I believe that sanctions will be limited to individual officials and will not extend to companies, institutions or even the entire government.

The United States issued a new year’s report on the “Hong Kong Policy Act” on March 31 this year. Most of the chapters talked about the “Hong Kong National Security Act” weakening the judicial system, speech, and academic freedom.

One section mentioned that Hong Kong still maintains the level of autonomy. The report stated that Hong Kong still has free trade, the judicial system is still based on common law, and private property rights are well protected; when the Monetary Authority formulates monetary policy, it is independent of the People's Bank of the Mainland.

Ren Zhigang talked about the report on the business program "Position Good Sunday", saying that when he was still the chief executive of the HKMA in 1997, he had a roadshow with the People's Bank of China and talked about the fact that the financial systems of the two places are "relatively independent and independent of each other." Now that the Biden administration has taken office, its views on Hong Kong have changed slightly from that of the predecessor Trump. He said frankly, "I hope that you will use the financial war to fight too fiercely. If you don’t care about 3721, you can use nuclear weapons. Let’s use the US dollar again, and we tick the US dollar, so it’s not a big trouble for us to use it. I believe it won’t go so far.”

The people in this group are miserable, like Lam Cheng’s food is cash

The United States has dealt with Chief Executive Carrie Lam, Secretary for Justice Zheng Ruohua, Director of the Chief Executive's Office and Secretary-General of the National Security Commission Chen Guoji, Secretary of Security Li Jiachao, Director of the Constitutional and Mainland Affairs Bureau Zeng Guowei, Director of Police Deng Bingqiang, and former Director of Police Lu Weicong, etc. Sanctions.

Ren Zhigang does not think that it will weaken the international confidence in Hong Kong. He believes that the sanctions will only cause trouble to individual officials. "The people in this group are miserable. It seems that Lam Cheng pays cash. The banks are miserable. I do business but I don't care. Service can only be dumb and forbearing.” He believes that the United States will not extend the sanctions to companies, institutions, or even the government.

As for the relationship between China and the United States, there are voices mentioning that the United States may refuse to list Chinese stocks in the United States and prohibit American investors from investing in Chinese stocks.

Ren Zhigang pointed out that the United States has a net debt of 14 trillion U.S. dollars and is the world’s largest debtor country, while China is the United States’ largest creditor country. Each of the above-mentioned "financial weaponization" methods is very dangerous and troublesome, but it will also make the world question the United States. The behavior belongs to capital control, foreign exchange control, and debt default. "(The U.S.) is suffering and painstaking, and the U.S. will not be exhausted, otherwise it will have a counterproductive effect."

He believes that Hong Kong is the third most active market in the use of U.S. dollars after London in the United Kingdom and New York in the United States. The United States will not prohibit the use of U.S. dollars in Hong Kong. The linked exchange rate system in Hong Kong and the U.S. dollar is also as stable as a rock. The status of the international market will not be affected. However, from the perspective of being prepared for danger, when "don't you hook it up, do it again," emphasize that the issue is very sensitive and the possibility is extremely low, but it is not non-existent.

Regarding China’s use of the US dollar, Ren Zhigang believes that China should reduce its dependence on the US dollar. For example, when doing business with Brazil and Malaysia, the settlement unit should be renminbi, and the transaction should be more convenient for each other to promote the internationalization of renminbi.

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U.S. sanctions Ren Zhigang