Published: 00:58, March 26, 2021 | Updated: 21:27, June 4, 2023
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US sanctions will only hurt its interests in Hong Kong
By Lau Lan-cheong

The Biden administration of the United States, after the National People’s Congress (NPC) of the People’s Republic of China passed the decision on improving Hong Kong’s electoral system on March 11, declared last week it would impose sanctions on 24 officials from the Chinese mainland and the Hong Kong SAR, who participated in making this decision. That move showed the new US government is following the wrong path taken by the Trump administration in the past four years of wanton interference in Hong Kong affairs, which are China’s internal affairs. Widely seen as a form of “maximum pressure”, such interference has proved futile and will backfire as always. Washington’s obsession with sanctimonious arrogance reminds us of a famous quote from the Chinese literary classic Dream of the Red Chamber: “Too much plotting and scheming will lead to one’s own undoing.” In this case, the more sanctions Washington imposes on China over the latter’s handling of Hong Kong affairs, the more harm it will do to its own interests in Hong Kong.

As we all know, what happens in Hong Kong is entirely China’s internal affairs after China resumed sovereign rule over Hong Kong in 1997, and no foreign countries are entitled to interfere in the city’s affairs. However, the Trump administration frantically stirred up turmoil in Hong Kong to advance its anti-China agenda. It is evident that US agents and proxies were behind the “black revolution” that wreaked havoc on Hong Kong in 2019. Now its proxies in Hong Kong, such as Jimmy Lai Chee-ying, are held without bail while waiting for trial. It was precisely because of this “mutual destruction” scheme, which was supported and financed by external forces and intended to obstruct China’s development, that the Central People’s Government had no choice but to stop riots by promulgating the National Security Law for implementation in Hong Kong.

It is an undeniable fact that Beijing merely reacted to persistent violent rampage and threats with a national security law, which effectively restored peace and order in Hong Kong. However, instead of conceding yet another defeat, the Trump administration went completely berserk by announcing more sanctions on Chinese central government and HKSAR officials involved in pursuing the national security legislation. The so-called sanctions have violated the protocols of normal international exchanges in modern civilization. By using “long-arm jurisdiction” over another sovereign country’s internal affairs, the US government has shown a contempt for international law. Some people have actually expected the Biden administration to at least ease if not completely abandon Trump’s Hong Kong policy, but it appeared to be overwhelmed by right-wing bipartisanship and chose to go further down the path of bullying and useless sanctions.

One may wonder why Washington’s decision-makers keep repeating past mistakes as if they are oblivious to the adverse effect they have on the US’ huge economic interests in Hong Kong

Improving Hong Kong’s electoral system is an exercise of sovereignty and no business of the US. The move is aimed at plugging loopholes in Hong Kong’s electoral system that have allowed subversives and separatists to infiltrate the city’s governance establishment and harm the overall interest of local society. Obviously, that is unacceptable to those Western powers who would do anything to “contain” China. This political pressure, however, will not scare the Chinese people. Zhang Xiaoming, deputy director of the Hong Kong and Macao Affairs Office, said he feels honored to serve the country and unfazed by the sanctions; Tam Yiu-chung, a Hong Kong resident and a member of the Standing Committee of the NPC, denounced the US for the sanction and said it would not prevent him from making due contributions to the nation and the HKSAR in good faith.

China and the US could and should have pursued cooperation in bilateral trade to serve extensive common interests. Although the Trump administration waged a trade war against China, the trade value between the two countries soared by 80 percent in the first two months of this year. It still managed to surge by 20 percent, a record high in 17 years, even after factoring in the impact of the COVID-19 pandemic outbreak early last year, which caused a lower base. The US has enjoyed an annual trade surplus of around US$30 billion with Hong Kong for many years now. Despite the revocation by Washington of the “special trade status” for Hong Kong, US trade with the city has remained strong so far this year. American financial firms in Hong Kong are making huge profits from the local financial market.There is no shortage of experienced diplomats in Biden’s administration, and they should know that such sanctions will not yield benefit to his country, as demonstrated repeatedly by the Trump administration. One may wonder why Washington’s decision-makers keep repeating past mistakes as if they are oblivious to the adverse effect they have on the US’ huge economic interests in Hong Kong. Aren’t they worried the “big stick” tactic will hurt themselves with counter-force? The Hong Kong Monetary Authority has made it clear that financial institutions in Hong Kong will not implement the sanctions unilaterally imposed by the US. The Ministry of Finance of the PRC introduced the “Rules on Counteracting Unjustified Extra-territorial Application of Foreign Legislation and Other Measures” in January this year as a countermeasure against US sanctions. American financial firms are heavily represented in Hong Kong and are bound to suffer the consequence of arbitrary sanctions by their government.

The Biden administration will have to accept the reality of the US having huge economic interests in Hong Kong and reckon it cannot afford to sacrifice economic and other interests in Hong Kong under political pressure from the far right all the time. 

The author is president of Hong Kong think tank the Golden Mean Institute.

The views do not necessarily reflect those of China Daily.