US quashes Hong Kong special status

The US repealed the special status of Hong Kong under US law on Wednesday, paving the way for the financial hub to be stripped of trading privileges after Washington accused China of infringing on the autonomy of the territory.

US Secretary of State Mike Pompeo told Congress Hong Kong no longer enjoys a high degree of autonomy from China.

The declaration, which could have major implications for Hong Kong's trade hub status, is likely to anger Beijing.

"No reasonable person can assert today that Hong Kong maintains a high degree of autonomy from China, given facts on the ground," he said in a statement.

It follows Beijing's plan to impose a controversial new security law on the territory.

The security law was "only the latest in a series of actions that fundamentally undermine Hong Kong's autonomy and freedoms," Pompeo said.

"It is now clear that China is modelling Hong Kong after itself," he added.

Until now the US has given Hong Kong - a global financial and trading hub - special status under US law. The provision dates from when the territory was a British colony and gives it favourable trading terms.

But since last year this status has been conditional on the US secretary of state regularly certifying that Hong Kong maintains sufficient autonomy from mainland China.

If the secretary of state fails to certify this, the US Congress can revoke Hong Kong's special trade status.

This would mean treating Hong Kong the same as mainland China for trade and other purposes.

What impact would revoking status have?

It could jeopardise billions of dollars worth of trade between Hong Kong and the US and could dissuade people from investing there in the future.

It would also hurt mainland China, which uses Hong Kong as a kind of middleman for transactions with the rest of the world. Mainland companies and multinational firms use the territory as an international or regional base.

Shortly after Mr Pompeo's declaration, prominent pro-democracy activist Joshua Wong called on US, European and Asian leaders to follow his lead and reconsider Hong Kong's special trade status if Beijing imposes the security law.

"Once the law is implemented, Hong Kong will be assimilated into China's authoritarian regime, on both rule of law and human rights protections," he warned.

The security law would create "massive damage to expats and investors in Hong Kong", he said. Maintaining the city's autonomy was the "only way" to protect business, he added.

(Source: BBC/CNA)