Hong Kong Security Law Is Going to Devastate Its Economy
May 27th, 2020Via: Nikkei:
China’s announcement last week that it plans to impose national security legislation on Hong Kong raised grave concerns about the city’s democracy. But the economic toll could be sizable, too.
At the very least, Hong Kong can kiss goodbye its status as the world’s second-freest economy, a halo bestowed by the Heritage Foundation. The Washington-based think tank has long fetishized Hong Kong’s negligible tax rates, duty-free ports, ease of doing business, unfettered capital flows and transparent rule of law.
Worse, last year the U.S. passed the Hong Kong Human Rights and Democracy Act, which mandates an annual review of the city’s autonomy; if it finds that China has taken more control, as this move certainly suggests, the U.S. can remove economic and trade privileges Hong Kong enjoys. This would remove its attraction as a gateway to China.
All of this comes as Hong Kong’s economy reels from last year’s massive protests — which may now return — the U.S.-China trade war and the fallout from the coronavirus outbreak.
Related: U.S. Considering Suspension of Hong Kong’s Special Tariff Rates
