The Chinese legislature passed a security law recently to prevent terrorism, interference of foreign countries, subversion, and succession. 13,000 firms are operated in Hong Kong by the United States. Many business tycoons are wondering about these business implications. The state department of the US stated that Hong Kong is not liberated enough to get special attention.
The advisory in the US said that operating business in Hong Kong could threaten their reputation. There could be a risk regarding data privacy. The US is constantly giving tit for tat when it comes to Hong kong. The Hong kong authority said that the US is hypocritical and a country with double standards.
A lot of people got arrested because of the security law including Jimmy Lai. His newspaper company was closed because of the arrest. Police also arrested 7 of the staff members and froze their assets.
In the past year, Hong Kong has been coming up with new laws for the betterment of people. They’ve arrested the democracy activist. They’ve gained tones of criticism from the Us and governments from the west. Hong Kong is one of the best leading financial centers in the world, calculated in June. This figure rose by 16% over the last year.
To which, china replied that matters happening in Hong Kong are internal affairs of China and they will not support any interference. Hong Kong has its different customs, territory, and judicial system. The experts at the place are worried that the rule of law is compromised.
Ms. Joseph said that the rule of business is very sound in the international environment. She continued saying that it is vital to have this law for the business community. She further said that she hopes that Hong Kong will not compromise with the global standards.
The US has established firms in Hong Kong is because of the opportunities that Hong Kong provides. After Newyork and London, Hong Kong has been recently ranked number 3 in the financial sectors. The US was 35th in the world.
It is hard to measure that how big is this security law. How the US will take it. China is completely dependent on Hing Kong for its equity. 85,000 Americans have been living in Hong Kong for work. Mr. Kedl said that the owners of American firms based in Hong Kong should start thinking about the current situation but should not make a decision yet.
Many things have changed in all the countries over years. Some laws proved to be beneficial whereas some were not the right ones. People should wait and see what will the situation lead to before taking any decision. The US companies are in doubt about their business in Hong King but things keep changing. The situation could get better or maybe worse. A new operation in the process will take some time but it might work very well and be beneficial for all.