Pompeo says Hong Kong is no longer autonomous from China, raising potential consequences for trade
Secretary of State Mike Pompeo notified Congress on Wednesday that Hong Kong no longer should be considered autonomous, a declaration that could have far-reaching ramifications in its trading relationship with the United States.
Under a law passed by Congress last year, Pompeo was required to issue a determination on Hong Kong’s autonomy. In a statement, Pompeo noted last week’s announcement that China will impose national security legislation on the former British colony. Calling it “only the latest in a series of actions that fundamentally undermine Hong Kong’s autonomy and freedoms,” he said the legislation means Hong Kong no longer merits special treatment that applied when the territory was under British rule before 1997. “No reasonable person can assert today that Hong Kong maintains a high degree of autonomy from China, given facts on the ground,” Pompeo said.“Hong Kong and its dynamic, enterprising, and free people have flourished for decades as a bastion of liberty, and this decision gives me no pleasure,” he added. “But sound policy making requires a recognition of reality. While the United States once hoped that free and prosperous Hong Kong would provide a model for authoritarian China, it is now clear that China is modeling Hong Kong after itself.”“relevant national security organs” to Hong Kong, giving legal cover for the mainland security services to operate in the previously autonomous financial center. Pompeo has called it a “death knell” for Hong Kong. Pompeo’s statement essentially says it is no longer necessary to treat Hong Kong as separate because of the encroachment of Beijing. That threatens Hong Kong’s special status that has given it a favorable trading relationship with the United States. Trade between the two exceeded $66 billion in 2018, and Hong Kong has been exempted from tariffs that the Trump administration imposed on China.But the decertification of Hong Kong for special treatment is just the beginning of a process as the administration weighs a menu of options, including the removal of Hong Kong’s trading status and sanctions against Beijing. “Irrespective of the specific actions, this is an inflection point for the economic and political future of Hong Kong in terms of U.S. companies and investment,” said Jude Blanchette, who holds the Freeman Chair in China Studies at the Center for Strategic and International Studies, “If Beijing is unlikely to shift the trajectory, what do we get for putting Hong Kong’s economic future at risk? And that’s unclear. We’ve got to take action, make a public stand against encroachment by Beijing. The implications are profound, but it’s uncertain what specific actions the U.S. will take.”President Trump said Tuesday that the administration was working on a response, and it should be unveiled this week. Congressional leaders have been fiercely critical of Beijing’s proposed national security law and have threatened consequences. “With this latest national security legislative proposal, Beijing demonstrates that it would rather smother Hong Kong — a city of tremendous value to China and to the world — than keep its promise to give Hong Kong the latitude to manage its own internal affairs,” Rep. Eliot L. Engel, chairman of the House Foreign Affairs Committee, said last week. “If the National People’s Congress enacts this proposed national security legislation, its actions not only imperil Hong Kong’s special status, but Beijing’s own interests,” he said.Sen. James E. Risch , chairman of the Senate Foreign Relations Committee, issued a statement with two other Republican colleagues calling the Chinese legislation a matter of “grave concern to the United States” and saying it “could lead to a significant reassessment on U.S. policy towards Hong Kong.”
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