Most American companies in Hong Kong have no plans to leave despite being concerned about the new national security law imposed by Beijing.
This is according to a poll held by the American Chamber of Commerce in Hong Kong between July 6 and July 9.
Findings showed that over 64% said their companies do not intend to leave the city. The survey involved 183 respondents, which make up 15% of the chamber's membership. They were asked about the new national security legislation and its impact on businesses.
According to Beijing, the law targets secession, subversion, terrorism, and foreign interference. However, critics find it an attack on the autonomy that Hong Kong enjoyed for 50 years after it returned to China from the UK in 1997.
Results revealed that of the 76% who were concerned about the new security law, around 41% said they were “extremely concerned,” while 36.6% was “somewhat concerned.”
The Amcham survey shows that more than half of the respondents admitted they felt “less safe” living and working in the city. Meanwhile, 26% affirmed they felt safer. Despite that, 48% disclosed that they had no intentions of leaving.
The Hong Kong and Macao Affairs Office of the State Council were not immediately available for comment.
“There is a small minority who feel much better because the streets ... are quieter, and they feel they are safer there. But the majority ... were concerned, or extremely concerned about the national security law," said Tara Joseph, president of the American Chamber of Commerce in Hong Kong, during an interview with CNBC.
“So what it’s showing us is that the new normal in Hong Kong is not so normal, and there are a lot of question marks out there as far as businesses are concerned,” she added.
Business prospects
The Amcham survey results showed that 64% of the American companies in Hong Kong stated that they will not leave the city.
They mentioned the huge potential in China and the Greater Bay area, a region that covers nine Chinese cities in Guangdong province and Hong Kong and Macao.
However, the companies were not completely optimistic about the overall business prospects in Hong Kong. They emphasized that the national security law has affected the image of the city.
In fact, 42% said they were “pessimistic” while 25% said they were negative in the short term, but optimistic in the long run.
“Nobody wants to leave, but there are some question marks now that are arising now as a result of the national security law. And what makes people most uncomfortable as the survey is telling us is: they really want to hear some answers,” Josephs said.
“It’s the ambiguity that is making people worried, so they are worried about the rule of law, and whether that will actually continue to exist the way it has under one country, two systems. They are worried very much as well… about this idea of foreign interference, and where does that leave the U.S. community,” she added.
