Letter to Hong Kong (16 August 2020)
By Felix Chung
(Leader of Liberal Party and Member of the Legislative Council)
 
News about the Legislative Council has been one of the city’s central topics this week, as the HK SAR government announced their unprecedented decision that Legco elections would be postponed by a year due to the Covid-19.  Last Tuesday, The National People’s Congress Standing Committee announced that there will be a year-long extension for the 6th Legco term, and all existing members can continue to serve this provisional term. This arrangement is ideal as it can minimize potential political turmoil. Hong Kong has already been badly hit over the past year both politically and economically , it is time to focus on fighting the pandemic, rebuild the economy, and restore society’s confidence in the government.
 
Last month, Chief Executive Mrs. Carrie Lam proudly stated that the goals in her election manifesto are over fulfilled. Initially, she pledged to improve the relationship between the legislature and executive branches, however, her relationship with the pan-democratic camp has been worsening over the past two years. 
 
The failure of cooperation between legislature and the government as well as the deeply divided Hong Kong society resulted in delays in many administration works. So quite frankly, we do not understand why the Chief Executive believes she already finished most of her commitments within the first 2 years.
 
Because the HK SAR government failed to recover the city’s instability due to social unrest in the past year, the Central Government was forced to step in and impose the National Security Law in Hong Kong. Although we do respect and understand this decision, the imposition of the National Security Law has caused major influence from international powers.
 
Among them, the US’ response is the most drastic. The US made various excuses to revoke the 1992 US-Hong Kong Policy Act. US President Donald Trump also signed the Hong Kong Human Rights and Democracy Act, Hong Kong Autonomy Act and an executive order ending Hong Kong’s preferential trade status within the last six months.  Just last week, he imposed sanctions on 11 Hong Kong and mainland Chinese officials, including our Chief Executive Mrs. Carrie Lam.
 
Although we don’t know how serious the impact of the sanctions yet, I believe the US may take further actions against Hong Kong as tensions between US and China escalate. This could include expanding the sanction list and pressuring all international financial institutions in the city to stop servicing particular targets.
 
The uncertainty of US interference can cause even greater impact on the business sector.  China and the United States are the world’s largest economies, and Hong Kong stands as a valuable trading partner for both countries. These sanctions has created doubt over the future of Hong Kong as a financial hub, and many international businesses may be deeply affected by the new restrictions collided with the national security law.
 
The end of Hong Kong’s preferential status for the US also means that the city is now exposed to tariffs that were originally targeted for the mainland. Exporters who have relocated facilities from China to Hong Kong to avoid those tariffs will now suffer from serious losses.
 
The tension between China and the United States is likely to intensify, but one thing can be certain is that Hong Kong will continue to serve as the bridge between China and the rest of the World. We hope that the two countries will reach an  agreement in near future, otherwise, Hong Kong will continue to suffer. In the meantime, the Hong Kong SAR Government should enhance external promotion to reassure the international community on One country Two systems, and to restore confidence in our city. Internally, at least in the coming year, the HK SAR government should minimize political disputes and focus on solving livelihood and economic issues.