Hong Kong official: 99.99 percent won't be affected by new law

A new study revealed that American companies are “concerned” about Hong Kong, but they have not left the city yet

More than 80% of the companies that responded to a survey conducted by the American Chamber of Commerce in Hong Kong said they were either “severe” or “moderate”. Concerned about the lawThis is because of the ban on sedition, secession and vandalism against Beijing. The organization said 180 of its members responded to the poll, which was conducted on Monday and Tuesday. This represents about 15% of its membership, which is made up mostly of American companies.

Shams Many respondents said they understood the need for the law, which comes in the wake of six months of violent anti-government unrest last year. But some have expressed fears that this could lead to “potential harassment and privacy concerns”, or that more restrictive measures may be on the way.

“I am also worried about the tax structure and changes in [Hong Kong] A respondent wrote that the tax system might happen.

More than half of the companies surveyed said they were concerned about the law’s ambiguity and the erosion of Hong Kong’s independence. The former British colony became a semi-autonomous region in China more than 20 years ago, and has been largely left to run its own affairs since then.

The potential ability that law could lead to a loss of talent in the city or endangering its status as an international business center is also cited. American companies also fear that the escalation of US-China relations will hamper cross-border deals.

However, 70% of respondents said that they are not planning to relocate their business outside of Hong Kong. Most of them also said that they would not personally consider leaving.

One respondent wrote: “Not yet, but definitely put” insurance “plans in place and alternative terms of reference.

Corporate and investor confidence in Hong Kong was shaken late last month after news of the next law spread. The indicator Hang Seng Index (HSI) It sank more than 5% on May 22, the worst drop in a one-day percentage since July 2015.
Since then, feelings have stabilized – and Hang Seng It was even speculated With investors ignoring Washington’s limited response to the new Beijing law so far. The index has risen nearly 6% this week.
Last week, US President Donald Trump criticized the National Security Act and said his country She intends to end her special economic and commercial relationship With Hong Kong.

But experts have indicated that Trump has stopped taking immediate action. They suspect that ending the special status will not have much effect immediately because the region does not export much of the goods to the United States.

More than 70% of respondents to the AmCham survey said they are taking a “wait and see” approach for Trump’s response.

One of the respondents wrote: “It is too early to make strategic decisions about abolishing the special trading situation” and added that it will take several months to implement. Others said they would consider establishing entities in other parts of the region, including Singapore.

About 15% of respondents said they were still optimistic about Hong Kong’s business prospects, with one of them calling it “an unparalleled location in Asia Pacific.” But nearly half of respondents said they were pessimistic about Hong Kong’s business prospects in the medium to long term.

One respondent wrote that they were “afraid of losing shine forever”.

“Being a major city in the second largest economy is not a secondary role, but it is much less than a leading global city,” the respondent wrote.

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