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
** The blog article is the sole responsibility of the author and does not represent the position of our company. **