China says that the decision of the US to revoke Hong Kong's special status violates the rules of the World Trade Organization (WTO).
On Friday, President Donald Trump said that the US will remove special trading privileges they gave to Hong Kong. His remarks came after Beijing rolled out its plan to impose a national security law in the special administrative region.
Revoking Hong Kong's special status can impact a bilateral extradition treaty, commercial relations, and export processes between the US and Hong Kong.
Analysts consider the US' threat to further deepen the tension between the US and China as the coronavirus crisis persists.
According to Commerce Ministry spokesman Gao Feng, all WTO members acknowledge the special trading status provided to the former British colony.
"If the United States disregards the fundamental principles of international relations and adopts unilateral measures according to its domestic laws, it will violate WTO rules and will not be in the interest of the United States," Gao added at a regular press briefing.
A spokesperson of China's banking regulator said in a different statement that any sanctions would not shaken Hong Kong's status as a financial hub.
"Hong Kong's financial market is running smoothly... and there is no abnormal capital outflow", said the spokesman. He noted that this mirrors the international market's confidence in the city.
"Hong Kong is dead"
Tycoon Jimmy Lai said that US must not remove Hong Kong’s special status. He believes the region may lose its bargaining power that comes with being a financial hub.
“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
"One country, two systems"
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.”
Hong Kong, a special administrative region of China, is said to be observing a “one country, two systems” principle. This means the city can enjoy freedoms that those on the mainland do not practice. These freedoms include limited election rights, self-governing power, and a unique legal and economic policies from mainland China.
There are no definite details about the law yet. However, according to China, it will address secession, subversion of state power, terrorism activities and foreign interference. Beijing’s move bypasses Hong Kong’s legislature and may take a few months before it takes effect in the island.
For prosperity, stability
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.
