Beijing made an unexpected move to delay plans to introduce its controversial anti-sanctions law in Hong Kong, following widespread concerns about its effect on the city’s hub status.
The National People’s Congress Standing Committee (NPCSC) – China’s top parliament – has decided to postpone a vote on adding the mainland’s anti-sanctions law in Hong Kong, according to the city’s sole delegate Tam Yiu-Chung last Friday.
Tam had originally flagged Friday as the day the draft law would likely be approved, calling the move an «urgent» matter but he said that authorities have now decided instead to keep studying the issue and that this would lead to «more effective» legislation.
Avoid Scares
In the run-up to last Friday, there were numerous reports expressing serious concerns from the financial sector, including the real risk of having to shut down operations in Hong Kong to avoid having to choose between complying with Washington and Beijing’s sanctions.
According to a «Wall Street Journal» report citing unnamed sources, the latest postponement was driven by fears in Beijing that the new legislation could further dent business and investor confidence, which is already being hit by China’s regulatory crackdown.
China remains eager to implement the law in Hong Kong but is «likely to revise some of its terms to avoid scaring away international capital», the report added.
