Why business in Hong Kong should be worried

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Providers of cloud services in Hong Kong—including Amazon, Google and Microsoft—are under pressure to agree to demands from regulators for customers’ banking records

two weeks after its enactment, Hong Kong’s national-security law—a Leninist set of measures designed in Beijing and clamped on top of a legal system hitherto admired for its respect for individual rights—looms ever larger over the territory. In response, on July 14th, President Donald Trump signed the Hong Kong Autonomy Act. This authorises sanctions on those involved in “extinguishing Hong Kong’s freedom”, as well as on financial firms that knowingly do business with them.

It is not surprising that they use such indicators. Business interests are deeply enmeshed in Hong Kong’s political structures—even more so now than in British colonial days. The Basic Law, the mini-constitution that Hong Kong adopted at the time of its handover to China in 1997, gives companies a big share of the vote in the 1,200-strong committee that chooses the chief executive. Nearly half of Legco’s seats are “functional” constituencies set aside for commercial and other special interests.

Yet business is also a source of social tension. Yes, finance and related services remain globally competitive, accounting for about a quarter of the economy. But finance employs relatively few people compared with less competitive services, and pushes up prices for everyone in the territory. In the absence of other vibrant sectors, property prices have grown out of kilter with most Hong Kongers’ incomes.

The security law, meanwhile, may generate problems for business. Admittedly, many executives say they are confident that street turmoil on last year’s scale is unlikely to erupt again, and that the stockmarket will keep booming. Many local firms say they support the new law. But some dare not voice their anxiety. A new survey of members of the American Chamber of Commerce is revealing: 76% of respondents said they were somewhat or extremely worried about the legislation.

 

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The Economist is a fellow traveler. The Economist is a Communist Chinese Propagandist for profit. You support these totalitarians. They are evil. You are too.

Wondering what affect this will have. Will corporations lift and shift to Singapore?

Yet the economist still takes CCP money

this how i feed my family. do no report please.

With freedom endangered and judicial system being destroyed, the city as an international business hub is gone.

Oh how funny because $GSX Techedu takes bank info via WeChat accounts and steals $ and makes it look like people paid for classes. Crazy I guess it’s a common practice in China. Take bank info! Is t that right Mr Chen GSXIR1 ? Cycle the costs through subs to make $GSX look good

Those who are doing business with the Communist party of China should be declared complicit in crimes against humanity committee by the CCP mafia led by dictator Xi Jinping.

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