Policy Advocacy

In the name of protecting Hong Kong’s freedom and high degree of autonomy, “hawks” within the U.S. Government has been pushing the Trump and now the Biden administration to deploy the financial decoupling ‘toolbox’ on Hong Kong and Mainland China. As the geopolitical conflict between China and the United States continues, the risks for Hong Kong losing its position as an international financial centre are real.

The success of Hong Kong as an international financial centre has been built on: political stability, openness, transparent governance, rule of law and freedom of the press. It is necessary for Central and HKSAR Government officials to acknowledge that China’s Reform and Opening had its roots in Hong Kong when communicating Hong Kong politics to the international media. Since the handover in 1997, the HKSAR Government has not improved its governance capability significantly. Assertive statements from Central and HKSAR officials beyond the need for national security could undermine the confidence of international investors in rule of law and press freedom in Hong Kong.

Hong Kong’s soft power comes from its diehard liberalism accumulated over the past 150 years. In future, Hong Kong must take on the role of “Hong Kong, China” and tell the new “Hong Kong story” and new “China’s Story” to the international community. This paper highlights Hong Kong’s irreplaceable role as China’s international financial centre. It also highlights the need to adopt a moderate approach in the implementing the National Security Law and responding to external political challenges.