Hours after China was reportedly set to impose ground-shaking national security legislation for Hong Kong, the U.S. administration fired back with a bill that could place banks in the crossfire.
The new security legislation was introduced on the agenda of the Chinese People’s Political Consultative Conference which will commence today. The move marks the second such attempt that Beijing has made to tighten its grip on Hong Kong through security legislation since 2003 when around half a million took the streets and led authorities to shelf the efforts.
Hours later, the U.S. proposed legislation of its own through two U.S. senators – Democrat Chris Van Hollen and Republican Pat Toomey – which would punish Chinese entities involved in enforcing the proposed new security laws in Hong Kong, first reported by «Wall Street Journal».
«The communist regime in Beijing would like nothing more than to extinguish the autonomy of Hong Kong and the rights of its people,» said Toomey, of Pennsylvania, in a statement. «Beijing’s growing interference could have a chilling effect on other nations struggling for freedom in China’s shadow.»
Finance Under Attack?
Chinese entities aside, Hong Kong’s financial sector could also face serious headwinds due to tensions between Beijing and Washington. The newly introduced U.S. bill will also penalize banks that do business with the aforementioned entities that enforce China’s security laws.
And even without direct repercussions, pundits view the move as not only a breach of the Sino-British joint declaration to retain Hong Kong’s autonomy but also the major hit to the city’s reputation as an international financial center.
«If this move takes place, ‘one country, two systems’ will be officially erased,» said Democratic lawmaker Dennis Kwok in a «Reuters» report.
