‘No light at the end of the tunnel’: Americans join Hong Kong’s business exodus

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Worsening Sino-US ties, strict Covid rules and the crackdown on dissent have dented the territory’s fabled allure as a business hub, say expats

In July 2018, Tara Joseph, president of the American Chamber of Commerce in

Yet for many Hong Kong-based businesses, the Covid-induced separation is just the latest in a series of complications they have faced. Since Beijing imposed the national security law in the summer of 2020, executives say there has been a growing sense of uncertainty among businesses, both local or foreign.

More than three years of protests, the national security law’s imposition and Covid restrictions have had their effect on Hong Kong’s once freewheeling business community, Smith added. “And in particular for those who also operate in China, you have to toe the government line. But the irony is that if you toe the Beijing line, Washington will be unhappy.

“Everyone is walking a fine line here, and I’m afraid things aren’t going to get better,” said Prof Bhaskar Chakravorti, dean of global business at the Fletcher School at Tufts University in Boston. “Businesses these days feel they need to balance between their political capital and their ‘capital capital’.”

While many smaller businesses, such as Smith’s, refuse to engage in making public statements on controversial issues, others, in particular big apparel brands, have been caught in the crosshairs.

 

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Americans join Hong Kong’s business exodus

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