US must not remove Hong Kong’s special status, says tycoon Jimmy Lai. He believes it may lose its bargaining power that comes with being a financial hub.
Moguel Jimmy Lai, one of the city’s most prominent democracy activists, said that revoking Hong Kong's special status could "kill" the region.
“By taking away Hong Kong’s special status, Hong Kong is dead, Hong Kong is no longer Hong Kong because the residual value of Hong Kong — in the eyes of the international community and in the Chinese regime’s eyes — is totally gone,” said Lai
President Donald Trump said US will end its special treatment of Hong Kong after China imposed a national security law on Hong Kong.
According to Premier Li Keqiang, the country’s second-in-command, the decision to carry out the law was “designed for steady implementation of ‘one country, two systems’ and Hong Kong’s long-term prosperity and stability.”
US-Hong Kong agreements
However, not everyone sees it that way.
“The United States wants an open and constructive relationship with China but achieving that requires us to vigorously defend our national interests,” Trump said at a White House briefing.
The US will remove Hong Kong’s special treatment as a customs and travel zone from the rest of China, he noted.
During his speech, he also discussed actions over China’s handling of the coronavirus outbreak, state-led industrial espionage, and fraudulent activities by Chinese companies.
He emphasized the impact of the policy change on several US-Hong Kong agreements, from extradition to export controls, with few exceptions.
Hong Kong leader Carrie Lam told the public that their rights and freedoms will still be intact. In a statement about China’s approval of the bill, she explained that the national security law “aims to prevent, curb and sanction an extremely small minority of criminals who threaten national security, safeguarding the prosperity and stability of Hong Kong and maintaining ‘One Country, Two Systems.’”
“It will not affect the legitimate rights and freedoms enjoyed by Hong Kong residents. ‘One Country, Two Systems’ has been Hong Kong’s top advantage, and a stable and safe society will provide a favourable business and investment environment,” her statement read.
Impact on investments
Lai, during an interview on CNBC's "Street Signs," said that whether the US revokes Hong Kong's special status or not, Beijing’s law would affect the status of Hong Kong as an international and financial trading hub. He believes that the measures have an impact on business and investor sentiment.
“Without the rule of law, there will not be protection for people who do business here,” said Lai. “...there won’t be mutual trust for the financial businesses. Without mutual trust, transactions in minutes or seconds will not be possible."
“This is the death knell for Hong Kong and everybody in business (and) in the legal system, everybody knows this is very serious,” he added.
But Lai said he would remain invested and fight till the end.
“I will stay until the end to fight, I can’t leave. I’m one of the troublemakers, I can’t make trouble and leave,” he said. “This is my home, I got to fight to the end.”
