[Epoch Times, August 24, 2021](Epoch Times reporters Luo Ya and Lin Cenxin interviewed and reported). Concerned about the withdrawal of foreign capital from Hong Kong, the Standing Committee of the People’s Congress of the Communist Party of China decided last Friday (August 20) to postpone the voting on “Anti-Foreign The Sanctions Law is incorporated into Hong Kong and Macau legal documents. Experts believe that the Beijing authorities are only temporarily deferring and will continue to promote it soon, and foreign capital is already preparing to withdraw from Hong Kong.
In recent years, China and the United States have successively had frictions over trade, Xinjiang, Hong Kong, and Taiwan issues. The two sides have imposed sanctions on each other’s officials, individuals or institutions. The Standing Committee of the National People’s Congress of the Communist Party of China passed the “Anti-Foreign Sanctions Law” in June, which was interpreted by the outside world as countering the United States. Since Hong Kong and Macau are special administrative regions, this law originally did not apply to Hong Kong and Macau. The news broke that Beijing intends to amend the Anti-Foreign Sanctions Law to be included in Annex III of the Basic Law of the Special Administrative Region.
In the past, the United States used Hong Kong’s human rights issue as an excuse to impose sanctions on many Hong Kong officials, including Hong Kong Chief Executive Carrie Lam. Many banks in Hong Kong, including Chinese banks, have also stopped providing services to these sanctioned persons. Once the Anti-Foreign Sanctions Law is implemented in Hong Kong, banks may face pressure. Whether it is to implement sanctions from China or the United States, there may also be consequences.
The Hong Kong business community and foreign chambers of commerce have expressed their worries about this law. They are worried that this law will put multinational companies under pressure on both sides.
In mid-August, Carrie Lam expressed support for the introduction of the relevant laws of the Anti-Foreign Sanctions Act into Annex III of the Basic Law for implementation in Hong Kong.
Beijing is brewing to advance legislation to scare Hong Kong foreign investment
Li Hengqing, a scholar at the US Institute of Information and Strategic Studies, said that Carrie Lam was suspended from her bank account due to US sanctions. Even the Chinese-funded Bank of China Hong Kong branch dared not open an account for her, leaving piles of cash at home. It was reported that Beijing would amend the law and implement the “Anti-Foreign Sanctions Law” in Hong Kong. “She is very happy. Several officials in Hong Kong who have been sanctioned are very happy. I think there is a chance this time and we can get rid of the situation. I didn’t expect to call it suddenly last Friday. Stop it, it’s going to be postponed.”
As for the reason for the postponement, it is speculated that the outside world is worried about the large-scale flight of foreign capital from Hong Kong. The Wall Street Journal quoted people familiar with the matter as saying that the Chinese Communist Party is officially worried that this legislation will continue to shake the confidence of foreign investors and investors. Prior to this, Beijing’s tightened supervision of the Internet and supplementary education industry has caused investors’ doubts.
Li Hengqing believes that many of the world’s top 500 companies have branches or Asian corporate headquarters in Hong Kong. Once the Anti-Foreign Sanctions Law is implemented in Hong Kong, these companies will have to run and withdraw, because once foreign countries sanction Hong Kong officials or China Officials, as a result of China’s reciprocal sanctions, the property of foreign companies that impose sanctions in Hong Kong will be frozen. “These companies are terrified and can only run away.”
“As a result, the CCP was also terrified. All of these companies ran away, and Hong Kong really became a dead port.” Up.
Whether to continue to promote legislation in the future has caused speculation from all parties
The Wall Street Journal quoted people familiar with the matter as saying that the CCP still wants to implement this law in Hong Kong, but it may modify the content to appease foreign investors.
Li Hengqing questioned, if he really wanted to appease foreign investment, why did he release this signal in the first place so that the world could see that the CCP is a regime that does not keep its promises, including Hong Kong’s “one country, two systems” for 50 years and changes in only 23 years; joining WTO At that time, he said that he would insist on reform and opening up, but now whenever there is a turmoil, he is ready to roll in.
“It’s blocked now, but (the CCP) will soon promote it.” Li Hengqing estimated that the Beijing authorities still want to implement this law in Hong Kong, “because it has no money, seizes property, and steals money from the people. It’s the same as the harshness of the year. The subsequent levies and abuses will become its new normal.”
Increased U.S.-China frictions deter foreign investors
Critics believe that Hong Kong’s National Security Law, which was implemented in June last year, has allowed foreign investors to see Hong Kong’s “high degree of autonomy” being eroded. The Anti-Foreign Sanctions Law may damage Hong Kong’s reputation as an international financial hub and discourage foreign investors.
“Hong Kong and Macau’s Anti-Foreign Sanctions Law has been enacted for nearly a month to advance legislation, and many companies are already planning to withdraw.” Li Hengqing said that for some companies that have been operating in Hong Kong for decades, it is not easy to withdraw, but Are preparing. A few days ago, the US Consulate General in Hong Kong and Macau convened a meeting of some US companies in Hong Kong, and even the US General Chamber of Commerce in Hong Kong has stated that it will not withdraw.
Hong Kong is an important window for mainland China to attract investment and foreign trade. After the Sino-US trade war, the United States imposed tariffs on more than 300 billion Chinese products, and a large number of goods were re-exported through Hong Kong. However, in July last year, the CCP passed the Hong Kong National Security Act, prompting the United States to cancel the “Hong Kong Special Tariff Treatment” and Hong Kong’s status was gradually changed.
Will there be stricter sanctions in the future? Li Hengqing said that it is not yet known, but what can be predicted is that “the friction between the United States and China will only intensify, not decrease, and the situation for Hong Kong will only become more and more severe.”
Editor in charge: Sun Yun#
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