Trump ends Hong Kong's preferential status

Trump ends Hong Kong's preferential status

President Donald Trump on Tuesday ordered an end to Hong Kong's special status under U.S. law to punish China for what he called "oppressive actions" against the former British colony.

Gloria Tso reports.

President Donald Trump ended Hong Kong's special status under U.S. law on Tuesday (July 14) to punish China for what he called "oppressive actions" against the former British colony.

Citing China's decision to enact a new national security law for the territory, Trump said he signed an executive order that will end the preferential treatment Hong Kong has received for years.

"Hong Kong will now be treated the same as mainland China.

No special privileges, no special economic treatment and no export of sensitive technologies." The new order includes revoking special treatment for Hong Kong passport holders, according to a White House fact sheet, and follows the steps the administration took last month in eliminating Hong Kong's special status by halting defense exports and restricting its access to high-tech products.

Acting on a Tuesday deadline, Trump also signed a bill passed by U.S. Congress that would penalise banks doing business with Chinese officials who implement the national security law.

China responded within hours on Wednesday saying it would impose retaliatory sanctions on U.S. individuals and entities and urged Washington to stop interfering in China's internal affairs.

Beijing's security law for Hong Kong broadly defines subversion, secession, terrorism and collusion with foreign forces as crimes punishable by up to life in prison.

Critics of the law fear it will crush Hong Kong's freedoms, while supporters say it will bring stability to the region after a year of sometimes violent anti-government protests.

Trump's new measures are sure to further strain U.S.-China relations, which have soured over the coronavirus pandemic, disputes over the South China Sea, and China's treatment of Uighur Muslims. But ending Hong Kong's special status could also be a double-edged sword for the United States.

Analysts say the U.S. has benefited from the territory's business-friendly conditions, with over a thousand U.S. firms based there.