In July 2018, Tara Joseph, president of the American Chamber of Commerce in Hong Kong, wrote an article in the best-known local English-language newspaper, the South China Morning Post, stressing to Americans the territory’s unique position as an Asian business hub.
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.The authorities insist the law brought the territory “back on the right track” following months of street protests in 2019 and was necessary to ensure the national security of China.
“So what are you going to do? Well, just don’t say anything … Meanwhile, we are watching more of our friends leave because the territory has changed. As some say, ‘It’s now not a question of whether, but when.’”Political capital vs ‘capital capital’ Perhaps the thorniest issue confronting many China-facing businesses in Hong Kong in the past year is Xinjiang: the far-west Chinese province where UN experts and rights groups estimate that more than 1 million people, mainly Uyghurs and members of other Muslim minorities, are being incarcerated.
Last March, the Swedish clothing chain H&M was singled out by China’s state media and faced a huge backlash after it expressed concern about Beijing’s alleged use of forced labour in cotton production in Xinjiang. Immediately, some Chinese internet users called for a boycott and e-commerce platforms dropped sales of H&M.