Shocked Hong Kong in a new era under China’s ‘white knuckle’ control

HONG KONG (Reuters) – For 23 years, Hong Kong was an anomaly.

A free and partially democratic city under Chinese rule, protected by a strong rule of law tradition of the British colonial era, and a promise by Beijing of freedoms for its 7.5 million people who were unthinkable on the continent.

However, on June 30, China imposed a tough new paradigm on Hong Kong, marking the end of the liberal promise, say government, political and diplomatic sources.

Beijing’s national security legislation was a response to last year’s protracted protests, preceded by years of latent discontent at what many Hong Kong people saw as China’s progressive erosion of the city’s freedoms.

The legislation has apparently been enacted to combat terrorism, collusion with foreign powers, secession, and subversion. But its 66 articles have much deeper implications for Hong Kong.

China’s Hong Kong and Macao Affairs Office said the law would be a “sharp sword” over the heads of a “small number of people” that would jeopardize national security.

At the same time, the law would be a “guardian” of the rights, freedoms and peaceful lives of the rest of the people of Hong Kong, the China State Council office said.

The legislation has already had a significant impact on the financial center as the city government responds, sometimes with the participation of China.

A Hong Kong government source familiar with Beijing’s thinking said the law may have shocked many people, but had explained China’s limits on what is tolerable and what is not: a political reality that people must accept.

“It is no longer the old age,” said the government source.

“The end result is much worse than we expected and people are shocked. But in terms of China’s political outcome, the situation is clearer now. No one has to guess anything else.

The law has sparked a chill and the extraction of pro-democracy books from library shelves, the disqualification of Democrats from municipal elections, and the arrest of three teens by Facebook posts deemed secessionist.

New weapons have been created in China’s state security apparatus, including a National Security Office in a leafy neighborhood on Hong Kong Island.

In some outbreaks of opposition to the law, protesters have been arrested for once legal posters and for shouting slogans now labeled subversive.

‘ONLY THE BEGINNING’

Foreign governments and rights groups describe the law in grim terms: an assault on Western-style freedoms and a de facto dismantling of the “one country, two systems” formula that has endorsed Hong Kong’s role as one of the financial centers of the world.

The leaders of the Communist Party of China have a totally different vision at a time of increasing tension with the United States, and they prioritize the restoration of order and the elimination of foreign interference in the city.

The Hong Kong and Macao Affairs Office called the law a “milestone” and a “turning point” for Hong Kong to end the chaos.

Some Asian and Western diplomats say they have been surprised by the scope of the law and the speed at which Hong Kong is changing.

“Suddenly, it has shattered all the assumptions that govern Hong Kong’s place in the world as essentially a free, open, and well-run city,” said a Western envoy.

“The overreach has been surprising and many of us fear that this is just the beginning.”

Another government source who declined to be identified said more Beijing redlines would be revealed soon through its relentless control of the city.

The Chinese authorities are no longer restricted in scope and can intervene in city affairs whenever they wish. The law can circumvent all local laws.

The new National Security Office has investigative and enforcement powers and can make “proposals on important strategies and important policies to safeguard national security.”

Risks

Parallel to the legislation, there is a Beijing agenda to instill greater patriotism in Hong Kong and long ago tackle the thorns at its side, including the city’s free press, rights groups and opposition, activists say.

To view a timeline for the national security law, click

But there are risks for Beijing.

International pressure has grown, and some Western countries have offered passports to the people of Hong Kong, provoking Chinese anger and increasing the risk of a brain drain.

Some companies are recalibrating their perceptions of Hong Kong, in part because of customer and data confidentiality concerns due to new powers under the surveillance law, asset freeze and demands for information.

Hong Kong’s financial markets have been largely positive, although the United States’ withdrawal from Hong Kong’s preferential trading state in response to the law will weigh financially.

The removal of open dissent and the removal of social media accounts does not mean that convictions have changed, some say.

“If I go back, if I resign, that means the regime wins,” said activist Sunny Cheung.

“This is not just something very intangible or ontological … We should try our best to protect Hong Kong’s distinctive character, identity and values.”