Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Trump now signed a Hong Kong Human Rights Democracy bill. This is going to really affect and strain the economic relations between China and USA very dreadfully.
I get why they they signed and passed the bill, but the rule is if there is evidence of human rights violations against Hong Kong people, the punishment is treating and placing tariffs on Hong Kong's economic businesses the same way as they do with the rest of mainland China. Currently, Hong Kong has a totally different unique economic relationship with USA that is totally different from the USA-China economic relations including more extra special treatments.
I do not think that part is such a good idea and from what it looks like, it would not affect mainland Chinese government that much because it ultimately punishes mostly Hong Kong's government and economy and would highly affect the people of Hong Kong including maybe their jobs and mainland China will not care much for it anyway because Hong Kong's economy only contributes to 3% of China's economy and China could still continue to get away with whatever they want to do to Hong Kong even if illegal.
Theoretically speaking, the bill is supposed be mainly punishing mainland China's government and maybe partly Hong Kong's government and it is not even supposed to be punishing Hong Kong's economic system at all. In other words, it is supposed to be punishing the policy makers that are supposed to be protecting Hong Kong's special administrative status and people's human rights.
Is there something that I missed in this bill? From what I read, it looks like the punishment would almost be all towards Hong Kong and not so much mainland China.
..... like the punishment would almost be all towards Hong Kong and not so much mainland China....
Actually it is good for China. Very bad for US companies and others.
H.K. is a free port. There are hundred billion dollars worthy of goods and services flow from the West via Hong Kong to China without much taxation every year. US alone has surplus with H.K. for $60 billions a year. A lot of smugglers from China go to H.K. buy goods and carry over the borders to China illegally.
China can't wait to tight up all the loose ends. But this means less prosperous for H.K. if China decide to do that.
Actually it is good for China. Very bad for US companies and others.
H.K. is a free port. There are hundred billion dollars worthy of goods and services flow from the West via Hong Kong to China without much taxation every year. US alone has surplus with H.K. for $60 billions a year. A lot of smugglers from China go to H.K. buy goods and carry over the borders to China illegally.
China can't wait to tight up all the loose ends. But this means less prosperous for H.K. if China decide to do that.
If this happens it's not good for anyone.
US suffers because fewer goods flow from US to HK to mainland.
HK suffers because of decreased cross-border trade.
China suffers because of a lack or increased price of goods and thus lost revenue from domestic businesses.
US suffers because fewer goods flow from US to HK to mainland.
HK suffers because of decreased cross-border trade.
China suffers because of a lack or increased price of goods and thus lost revenue from domestic businesses.
If China act smart (not sure with the current leadership), they can compensate by reducing import duties and red tape on imports going directly to China.
If China act smart (not sure with the current leadership), they can compensate by reducing import duties and red tape on imports going directly to China.
In that way only Hong Kong will lose.
That would be smart and practical, but, doing so for the US could be interpreted as a "victory" for the US camp which will never be OK by Uncle Xi.
Don't forget HK has better human rights than many other places in the world.
I just went to Central, there are many westerners as usual in both day and night, the same before the protests. If HK has bad human rights, would a large amount of foreigners still exist in HK?
Obviously, This bill is a thing with wicked intention against the largest rival of the US.
A HK person supporting punishing his or her city is a traitor. The Cantonese slang of such person is 25 guy
China can retaliate, some Americans and Chinese will be losers while some will gain. Wealthy people of both countries will not be affected. Chinese business people can focus on the large domestic market.
The granting of tariff free trading status to Hong Kong was a part of the "Hong Kong Policy Act" passed by Congress in 1992. The assumption is that Hong Kong would still enjoy the same kind of liberty that had been enjoyed under the British rule. If the liberty is eroded, then US would just treat Hong Kong as another part of China in term of trade.
When the Hong Kong Policy Act was passed, Beijing did not oppose that it was an interference in China's internal affairs. In fact, it welcomed the bill.
Like the annual review of Most-favored Nation status by Congress before China joined WTO in 2000, that status was never revoked even after the Tiananman crackdown in 1989. The revoking of Hong Kong's tariff free status is the nuclear option that will likely never be used.
However, there are some terms in the bill that really hurts China. For example, any Chinese or Hong Kong officials, who are in charge of pushing any anti-human right bill, i.e. the Extradition Bill, will be subject to economic sanction by US. He/she and their family members will be denied entry into US, their assets in US will be frozen and if they are already in US, they will be expelled.
The economic sanction is quite extensive. If the alleged has a US$ dollar account in HK and he transmits money to somewhere else, the amount he transmits will be frozen by US because it needs to go through bank in US for clearing.
And the officials will not be confined to only the Chief Executive and the cabinet members. All members in the Executive Council will be included and they are held responsible.
From now on, no HK officials will dare push any more controversial political bills. Why? Plain simple. Because most of them have their assets in foreign countries. Even though the foreign country may not be US, probably they are all US allies.
Another problem is the HK lobby is quite effective. They are now lobbying similar legislation in Canada and UK. Later maybe Australia.
Whenever Beijing responds vehemently, that means China really hurts. Before this bill is passed, Congress also passed bill regarding Xinjiang. Did China complain? Only verbally because that one is not effective and does not hurt.
The tariff part is not a interference in China's internal affairs, but the sanctions are.
While the law give US the right to sanction, it is not something they will use lightly, because it will lead to Americans being sanctioned in China and escalate the trade war. Also a lot of non democratic leaders around the world keep their money in the US. It is not in the US interest to make them feel their money is unsafe.
The main point of the law is to give a message, and the Hong Kong government knows that. If any draconian measures will be implemented, then it will be implemented by Beijing directly.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
