Hong Kong Human Rights and Democracy Act
Hong Kong Human Rights and Democracy Act
No.
The autonomy of Hong Kong is based on the Sino-British Joint Declaration of 1984. The Hong Kong Basic Law, which stipulates that Hong Kong will enjoy a “high degree of autonomy” after its return to China in 1997, is drafted on the basis of this international treaty. In other words, Hong Kong’s autonomy has always been an international agreement. Without international recognition, there is little point for the PRC to claim Hong Kong as a “special administrative region.” Why would the international community concern itself with the autonomy and freedom of Hong Kong? Because Hong Kong is always a global city, which is the place of trade, work, travel, and study for people all over the world. American businesses, for example, have already set up 290 local headquarters and 434 local offices in Hong Kong, with more than 85000 American citizens living in the city. As a stakeholder in the “One Country Two System” policy in Hong Kong, the international community has a strong interest in Hong Kong’s ability to sustain its autonomy and freedom.
The Act will provide stronger institutional safeguards for sustaining Hong Kong’s autonomy, which is crucial to promote the following U.S. interests.
Under the Hong Kong Policy Act, Hong Kong has been recognized as a non-sovereign entity distinctive from China, enjoying various special treatments from the U.S.. This includes a special agreement on tariffs and trade. Internationally, Communist China has been shown to be below par in areas from human rights and rule of law to its political and economic systems; while Hong Kong’s legal and economic systems are widely recognized by the international community since the colonial time. Thus, under the Hong Kong Policy Act, the U.S. is willing to grant special treatments to Hong Kong in trade, investment, travels, import, export and international agreements. However, the Hong Kong Policy Act provides no punitive measure and mandatory reporting has been stopped since 2006. The only measure that the U.S. can take is to impose territory-wide sanctions on Hong Kong by terminating some or all special treatments, but the cost of which will be paid by all Hong Kongers.
Hong Kong Human Rights and Democracy Act is the enhanced version of the Hong Kong Policy Act. The passage of the Act will institutionally strengthen U.S.’s role in monitoring and supporting the preservation of Hong Kong’s autonomy. Under the Act, the Secretary of State will annually file a report to the U.S. Congress certifying whether Hong Kong is sufficiently autonomous to justify the extension of the special treatments by the U.S.
The Act also empowers the President of the U.S. to maintain an active list of individuals who are known to have violated human rights, democracy and autonomy of Hong Kong. Individuals in this list may face sanctions including travel ban and freezing of assets in the U.S.
Hong Kong has long stood as the central hub of international trade in Asia. The recognition of Hong Kong’s autonomous status by the U.S. and the international society is the foundation of Hong Kong’s economic role as the central hub of international trade and finance. This economic role enables Hong Kong to function as the major channel for trade, capital and direct foreign investment for China.
For instance, by 2018, Hong Kong has become the major platform for channelling and raising capital that are essential to China’s economic development. Hong Kong has contributed 71.1% of China’s foreign direct investment (96 billion USD). Chinese corporations have also raised 35 trillion USD through Initial Public Offering in Hong Kong’s stock market, with 1146 Chinese state-owned enterprises and private companies being listed in Hong Kong’s stock market. In the same year, the banking system of Hong Kong has also extended credit to banks and corporate clients in China up to 713 billion HKD while Chinese corporations have issued 72.3 billion USD worth of bonds in Hong Kong.
Comparing with other cities in the mainland, Hong Kong’s economic contribution is indispensable to China’s development. In the event of the U.S. and international community withdrawing their recognition of Hong Kong’s autonomous status, it will not only be the end of Hong Kong’s role as an international financial center, there will also be catastrophic damage to China’s economic, or even political, stability. In other words, it is in China’s critical interest not to adopt any radical measures that may endanger Hong Kong’s status as an international financial center which are tied to Hong Kong’s freedom and autonomy under ‘One Country-Two System’.
The Hong Kong Human Rights and Democracy Act requires the Secretary of State annually provide Congress a report which certify whether Hong Kong’s conditions in autonomy, human rights and democracy are satisfactory according to the Sino-British Joint Declaration, the Basic Law and the international bill of human rights. The report will also consider whether any Hong Kong officials or individuals should be sanctioned due to human rights violation.
This institutionalized mechanism is favourable for maintaining international attention to Hong Kong’s conditions. The annual certification is equivalent to U.S. annual endorsement of the ‘One Country-Two system’ arrangement. This not only helps preserve Hong Kong’s high degree of autonomy as promised, it will also enhance international confidence in Hong Kong.
The Hong Kong Human Rights and Democracy Act empowers the Secretary of State to compile an active list of individuals who are known to be responsible for the erosion of Hong Kong’s autonomy. Individuals in this list and their family members may face sanctions including travel ban and freezing of assets in the U.S. This individual-based sanction mechanism can provide flexibility necessary for avoiding full scale territory-wide sanction on Hong Kong under the Hong Kong Policy Act; it can also provide credible deterrence to the powerful individuals who seek to endanger Hong Kong’s freedom and autonomy as their actions will be held accountable at the penalty of person losses.
No. The Hong Kong Human Rights and Democracy Act will support the autonomy, democracy and basic human rights (including freedom of speech, assembly and association) that are originally guaranteed under the “One Country Two Systems” framework as enshrined by the Sino-British Joint Declaration, Basic Law and International Bill of Human Rights. Therefore the advocacy of the Act has nothing to do with the independence movement of Hong Kong. On the contrary, the promotion of international monitoring can help rebuild confidence in the One Country Two System arrangement for both the people of Hong Kong and the world. If we allow the confidence in Hong Kong’s autonomy continues to deteriorate, Hong Kong people will only further turn to the independence movement.
No. Under the Hong Kong Human Rights and Democracy Act, the Secretary of State will be mandated to annually file a report to the U.S. Congress certifying whether Hong Kong is sufficiently autonomous to justify special treatments by the U.S.. In one sense, it is indeed exposing Hong Kong to some risk because U.S. has effectively changed its policy from recognizing Hong Kong’s status as a separate customs territory by default to by annual certification. Yet this measure can be favourable to Hong Kong in the long run.
Under the Hong Kong Policy Act, the U.S. can already revoke the recognition of Hong Kong’s special treatments in the event of Hong Kong not retaining sufficient autonomy. Yet this action will create massive economic damage to not only China, but also to the U.S. and the world. Under all normal circumstances, this is a ‘nuclear option’ that cannot be used lightly. However, if Hong Kong’s autonomy continues to deteriorate, China will eventually gain full control over Hong Kong’s policies, legal system, information flow and business environment. As a result, Hong Kong will in effect be no different from any other Chinese city. In this event, recognition of Hong Kong as a separate customs territory will no longer be in the U.S. interest; it may even be considered as a significant threat to the U.S. national security. For instance, the U.S. may be concerned with China stealing its sensitive technology through Hong Kong. This may leave the U.S. with no option but to adopt the ‘nuclear option.’. The situation is similar to that of cancer. The symptoms of cancer in early stages can be subtle or even unnoticeable. But as the cancer develops, it may be too late for any effective treatment. The annual certification of Hong Kong’s autonomous status is similar to regular body checks which allow problems to be identified and addressed in early stages. Through continuous engagement between China, U.S. and Hong Kong, threats to Hong Kong’s autonomy may be neutralized before they reach severity. In the long run, Hong Kong’ status as an autonomous status (including its status of separate customs territory) will be more stable and secure under this mechanism.
No. If the U.S.’s primary objective is to destroy China, the Hong Kong Policy Act is sufficient for that purpose because it already consists of mechanism for territory-wide sanction on Hong Kong. The amendments through the Hong Kong Humans Right and Democracy Act will be largely redundant. The complex mechanisms of annual certification and individual-based sanctions are created for enhancing the U.S.’s flexibility in addressing the problems in Hong Kong. In the final analysis, U.S. and the international community are significant stakeholders who have huge interests in Hong Kong. Given the complex and interlocking economic relationship between China and the U.S., devastating China through destroying Hong Kong is against the fundamental interest of both the U.S. and the international community.
No, it is not interference with domestic politics of Hong Kong or China. Hong Kong Human Rights and Democracy Act is a legislation that affects the U.S. foreign policy towards Hong Kong. The bill decides whether U.S. would continue treat Hong Kong as a separate customs territory which is a decision entirely within the sovereign right of the U.S. This is analogous to the review system we adopt in other aspects of our lives. For instance, when a company decides whether to engage in a business venture with another company, one will need to assess the reputation, track record, and current practice before one can decide the terms of cooperation. In similar vein, the Act only institutionalizes this assessment process so as to better inform the U.S. government when deciding their policy toward Hong Kong. As an international financial center, if Hong Kong wishes to maintain beneficial business partnership with major economic powers of the world, it is advisable to take their views into account.
Section 7(a) of the draft Act, which limits the scope of individual-based sanctions on those persons who are responsible for Causeway Bay Books incident, Wang Jianmin/Guo Zhongxiao incident and extradition of individuals in exercise of internationally recognized human rights. The scope should be broadened so as to cover any acts or decision that erodes Hong Kong’s autonomy: “any other acts or decisions which erodes Hong Kong’s autonomy by the Government of China that are inconsistent with its commitments in the Basic Law and the Joint Declaration identified in the report under section 205 of the Hong Kong Policy Act of 1992 (22 U.S.C. 5731) to be added by this Bill, or causes further restrictions of internationally recognized human rights in Hong Kong and the exercise thereof.”