A barge displays the words “Celebrate National Security Law” in Victoria Harbor on July 1, 2020 in Hong Kong.
Anthony Kwan | fake pictures
According to a survey, a large majority of American companies in Hong Kong said they were concerned about the new national security law passed by China last month, but more than 64% said their companies have no plans to leave the city.
The survey, conducted by the United States Chamber of Commerce in Hong Kong from July 6 to 9, surveyed 183 respondents, representing 15% of its members, about China’s new national security law and what means for companies.
Beijing says the new law aims to ban secession, subversion of state power, terrorist activities, and foreign interference. But critics say it undermines the autonomy promised to Hong Kong for 50 years after it was handed over to China from the United Kingdom in 1997.
The survey results showed that of the 76% who expressed concern about the new security law, approximately 41% were “extremely concerned,” while 36.6% were “somewhat concerned.”
More than half of respondents said they felt “less safe” living and working in the city, while 26% said they felt safer, according to the Amcham survey. Despite that, 48% said they personally had no plans to leave.
CNBC contacted the State Council’s Hong Kong and Macao Affairs Office for comment and received no immediate response.
It is ambiguity that worries people, so they are concerned about the rule of law and if that will continue to exist in the same way that it has in one country, two systems.
Tara Joseph
president of the United States Chamber of Commerce in Hong Kong
Tara Joseph, president of the United States Chamber of Commerce in Hong Kong, told CNBC on Monday: “There is a small minority who feel much better because the streets … are calmer and they feel they are safer there. But most … were concerned or extremely concerned about the national security law. “
“So what it shows us is that the new normal in Hong Kong is not that normal, and there are many questions when it comes to business,” he added.
The introduction of the law raised concerns among some about the impact of Hong Kong’s status as a global financial center. Washington said it will revoke Hong Kong’s special trade status with the U.S.
Last week, a Bloomberg report appeared, saying that American officials in the Trump administration were looking for ways to undermine the peg of the Hong Kong dollar into the dollar.
Despite those fears, however, more than 64% of respondents indicated that their companies have no plans to move from Hong Kong.
They cited that there was potential in China and the Greater Bay area, an economically prosperous region comprising nine Chinese cities in Guangdong province and two special administrative territories: Hong Kong and Macao.
However, respondents were generally discouraged about the overall business prospects in Hong Kong, saying that the city’s image has been affected as a result of the security law.
About 42% said they were “pessimistic” and about 25% said they were negative in the short term, but optimistic in the long term.
“No one wants to leave, but now there are some question marks that come up as a result of the national security law. And what makes people feel more uncomfortable as the survey tells us is: they really want to hear some answers,” Josephs said. .
“It is ambiguity that worries people, so they are concerned about the rule of law and if that will continue to exist in the same way that it has in one country, two systems. They are also very concerned … about this idea of foreign interference, and where does that leave the American community, “he added.
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