HONG KONG — In an interview with The Associated Press on Monday, the president of the American Chamber of Commerce in Hong Kong said that U.S. firms operating in Hong Kong should review their operations and consider if the risks of doing business there are worth the benefits.
The US-China relationship has worsened as a result of a trade war and rising tensions over China’s efforts to suppress political opposition in Hong Kong. Growing dangers, according to the Biden administration, include Hong Kong’s evolving legal landscape and Beijing’s increasing grip.
“The business landscape has obviously gotten more difficult than it used to be, and as far as business goes here, we’re absolutely in a new normal,” Joseph said.
Operating in Hong Kong, according to the US government advice, might result in reputational, legal, and data privacy concerns.
The Hong Kong government called it “unfounded fear-mongering,” accusing the US of hypocrisy and double standards.
Despite months of few coronavirus cases, Hong Kong authorities have changed voting laws, imprisoned most of the city’s most famous pro-democracy campaigners, and banned large-scale rallies, claiming public health dangers from the epidemic. The United States and other Western countries have reacted angrily to these actions.
China has retaliated, claiming that Hong Kong’s problems are within China’s internal affairs and that other countries should stay out.
The Biden administration’s advice, according to Joseph, might affect the attitudes of U.S. firms that aren’t currently operating in Hong Kong. However, the city continues to be a vital center for doing business with mainland China.
Although Hong Kong has its own customs territory and nominally autonomous judicial system, analysts are concerned that the city’s famous “rule of law” is being eroded by the recent practice of designating numerous problems as coming under the National Security Law.
“However, any evidence of that being unraveled or any genuine changes taking place there may be quite concerning,” she added.
Joseph expressed her optimism that Hong Kong will be able to uphold global norms.
“Anything that undermines that can make it more difficult for Hong Kong to maintain its role as a gateway,” she said. “However, we hope that there will be a greater understanding and recognition that it is a win-win situation for people to keep their businesses here and for Hong Kong to keep its position as a gateway,” she added.