Killing Hong Kong’s autonomy

Washington’s declaration that Hong Kong no longer enjoys a “high degree” of autonomy from China points to the likely economic impact of Beijing trampling over the territory’s prized democratic freedoms. The formal announcement by Secretary of State Mike Pompeo opens the way for Donald Trump to impose sanctions that could destroy Hong Kong’s position as a global business hub and the preferred base of many US and other Western companies as their gateway to the wider China market.

Hong Kong has long operated as one of the freest and most successful economies in the world, even in the 23 years since Beijing took control after committing itself to the “one country, two systems” model that enshrined autonomy until 2047. Endorsement by the US and other nations of the territory’s special status served as a seal of approval for the city’s business role. That was backed by an efficient and respected Western-style court system and the rule of law. The system was the basis for the remarkable economic success enjoyed by Hong Kong’s 7.5 million people and was a useful link to mainland China between East and West. That status is under immediate threat of being extinguished as Chinese Communist Party delegates rubber-stamp President Xi Jinping’s dictatorial security laws. These are targeted at what the CCP brands as Hong Kong’s “terrorist” democracy movement.

Mr Xi and his handmaid in Hong Kong, Chief Executive Carrie Lam, are deluding themselves if they dismiss the overwhelming support enjoyed by the democracy movement in the territory. Nor will the draconian new regime, in whatever form it takes, diminish the Hong Kong people’s overwhelming support for democracy.

After declaring himself president for life, Mr Xi is frustrated over his inability to impose his will on Hong Kong. His predecessors since the 1997 handover, Jiang Zemin and Hu Jintao, recognised the value to China of Hong Kong as a financial hub and entry point. They also understood the reputational and financial damage that would be done if the “one country, two systems” model was abandoned. They did not interfere. Mr Xi appears to have different priorities. His warning to the CCP congress that “it is necessary to step up preparations for armed combat” is resonating, especially in Taiwan but also in India and farther afield.