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Hong Kong business advisory by the US is set to backfire

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Hong Kong business advisory by the US is set to backfire
Blog

Blog

Hong Kong business advisory by the US is set to backfire

2024-09-08 14:08 Last Updated At:14:11

Mark Pinkstone/Former Chief Information Officer of HK government

The United States is so hellbent on destroying Hong Kong that it is now advising its business community not to do business in the region. This follows hot on the heels of another advisory warning people not to visit Hong Kong or they could be jailed for trivial matters.

On September 6, a joint effort by the US Departments of State, Agriculture, Commerce, Homeland Security and the Treasury issued a Hong Kong Business Advisory of “the imposition of bounties, may negatively affect businesses’ staff, finances, legal compliance, reputation and operations.”

What a load of hogwash!

About 70,000 Americans living in Hong Kong can testify that this is rubbish, otherwise they wouldn’t be here. Since the handover in 1997, there are now more Americans living in Hong Kong than British. And about 1,100 American companies established in Hong Kong employ about 10 per cent of our workforce.

The joint statement was issued under the umbrella of the mindless State Department, which has nothing better to do than meddle in other country’s affairs. Its policy for the Asia-Pacific region is to contain Hong Kong/China as much as possible and to use any means possible, such as meaningless advisories, to obtain its objective. This includes multiple sanctions against various people, companies and goods. And although Hong Kong is a member of the World Trade Organization (WTO) in its own right, the dictatorial US has decreed that the label of “made in Hong Kong” cannot be used on any goods exported to the US.

The advisory went on to warn that businesses operating in Hong Kong face potential legal, regulatory, operational, financial and reputational risks, including of increased scrutiny potential financial penalties and legal actions for perceived violations of the National Security Laws and the National Security Ordinance.

WOW! All of that without a shred of evidence. The Americans living here must feel embarrassed by the proliferation of false narratives from the State Department. The Americans in Hong Kong are a vital part of the community. They are well respected, and they contribute significantly to the city’s welfare. They have their own schools and club houses and both political parties, Democrats and Republicans, have branch representatives in Hong Kong and a lively Chamber of Commerce, the largest outside the US. Well known American icons are established in Hong Kong. Coffee shop chain Starbucks has 164 outlets and hamburger giant McDonalds, with a local staff of 15,000, has 245 outlets.

They all seem to be doing well without any local government interference. So, contrary to what the State Department says, Hong Kong has always adhered to its policy of positive non-intervention. The only possible government intervention would come from the US itself. The advisory warns that any businesses operating in Hong Kong face conflicting jurisdictional requirements and liability in connection with (US-imposed) sanctions compliance efforts. “Failure to adhere to US sanctions can result in civil and criminal penalties under US law,” the statement read. So, yes. Americans be warned: Uncle Sam is watching you.

The US-imposed sanctions have had some impact on US-Hong Kong trade, which in 2023 was about 6 per cent down on the previous year. But it is still big business and worth about US$60.3 billion (HK$472.2 billion). In fact, the US is about the sixth largest source of external investment in Hong Kong.

The wise men and women in business know the situation in Hong Kong better than the State Department and apparently the US Consulate General (USCG), which feeds its masters with whatever information they want to hear. The USCG must know the real Hong Kong situation but buries its head in the sand to avoid making recommendations against US policy.

US enterprises are firmly entrenched in Hong Kong by establishing 214 regional headquarters, 419 regional offices and 640 local offices with parent companies located in the US. Further, Hong Kong is recognised as the financial hub of Asia and hosts 151 licensed banks, of which 10 are from the US.

Hong Kong welcomes overseas investment and offers an environment in which there is a free flow of capital and a return on investment without exchange controls.

With such high activity by American enterprises in Hong Kong, the business advisory issued by the State Department mere scaremongering to scare off potential investors. It means little and is not worth the paper it’s written on.




Mark Pinkstone

** 博客文章文責自負,不代表本公司立場 **

As the UK government arrested two British journalists for supporting Palestine in the Israeli war, its junior minister for the Indo-Pacific issued statements decrying the conviction of two Stand News executives on sedition charges.

It was a clear case of double standards: “Do as I say and not as I do” syndrome.
Independent Syrian-British journalist Richard Medhurst was arrested as he exited his plane at London’s Heathrow airport on August 15 under the provisions of the Terrorism Act 2000. One week later, British human rights activist and reporter, Sarah Wilkinson, was arrested at her home, allegedly for the content she published online in support of Palestine and against the Israeli genocide in Gaza. On the same day British police arrested the co-founder of Palestine Action, Richard Barnard, and charged him with three offences for comments he made in two speeches.

London-based World Socialist website said the arrests of the journalists were part of the escalation by the British ruling class against left-wing journalists and outspoken opponents of the US-backed Israeli campaign of extermination of Palestinians in Gaza.

One week after the Wilkinson arrest, two former editors of the now defunct Stand News – Chung Pui-kuen and Patrick Lam Shui-tung – were found guilty of sedition. Prosecutors alleged Stand News had sought to incite hatred against authorities through 17 articles published between July 2020 and December 2021.

The articles included interviews with detained activists, such as Owen Chow, Fergus Leung, and Gwyneth Ho, who were among 45 others convicted of conspiring to commit subversion. Ho had worked as a journalist at Stand News during the 2019 protests.

The 57-day trial was overseen by District Court Judge Kwok Wai-kin, who ruled that 11 of the 17 publications raised by the prosecution were seditious, noting that the political climate at the time was extremely heated and many people were unhappy with the SAR and central governments. He ruled that the political ideology of Stand News was localism, and its stance was to "support and promote Hong Kong’s local autonomy".

“During the anti-extradition bill movement, it even became a tool to smear and vilify the central authorities and the SAR government,” Kwok wrote in his judgement.

Immediately after the verdict was delivered, the mainstream media (msm) and the usual suspects (Reporters without Borders, Hong Kong Journalists Association, Amnesty International etc,) jumped to the defence of the Stand News duo, all claiming the verdict was unfair and an infringement on press freedom.

And it is interesting to note that the UK arrests of two journalists, who favoured towards Palestine, received very little interest in the msm, but when anything untoward happens in Hong Kong there is world-wide condemnation.

The explanation is simple. Britain, Australia, Canada, New Zealand and the US are members of an exclusive club, known as the Five Eyes intelligence network. Members of the club cannot think for themselves and, like puppets on a string, follow the lead of the US, which, in its quest to maintain world dominance, will do anything to ostracize China/Hong Kong by drawing on the support of its allies.

Foreign critics of Hong Kong’s national security laws (NSL) and freedom of the press have failed to recognise that the sedition offence was not covered by the NSL, but by existing Hong Kong laws introduced by the Hong Kong colonial government to prosecute pro-communist newspapers in the ‘50s and 60s.

Uncharacteristically, Britain’s Secretary for the Foreign Commonwealth and Development, Lord David Cameron has not yet commented on the verdict and left that to a junior minister. Cameron, a friend of China-haters Lord Christ Patten and Lord David Alton, had previously been very critical of Hong Kong’s handling of dissidents, including Stand News. Perhaps he is very aware of the implications of the arrest of the two British journalists and believes in the adage that “people who live in glass houses should not throw stones.”

The only British reaction came from the Indo-Pacific minister, Catherine West who urged Hong Kong authorities to “end politicised prosecutions of journalists and uphold press and publication freedoms” as spelled out by the Basic Law. “Journalism is not a crime,” she said, and that Chung and Lam were convicted “for doing their job.”

Indeed, journalism is not a crime, but perhaps these editors were doing more “than their job.” There is a thick red line between criticizing the government and inciting hatred against the administration, which is sedition anywhere. Trained journalists know when they cross that line as it is a deliberate act, as Judge Kwok pointed out. They cannot claim ignorance as the definition is very clear with the key word being “incitement.”

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