US fold ties with Hong Kong, was recently deprived of the status of preferred business partner. Made on Friday the statement of the President of Donald trump on the introduction against Hong Kong sanctions caused a panic. Residents rushed to buy foreign currency, and local authorities tried to reassure the population, saying that more sanctions will hurt the USA. Indeed, the current sanctions were not too painful, but it was clear that Hong Kong is becoming a new sore point in relations between the US and China, which, in Washington’s opinion, violates the principle of “one country, two systems”.That the US dismantle the old model of economic and trade relations with Hong Kong that previously had the status of an independent customs territory, the President, Donald trump declared at the White house on Friday (see “Kommersant” on 30 may). “We will begin to consider the refusal of a number of privileges,” he said, explaining that it applies to trade and extradition agreements. The us also imposed sanctions against officials who “directly or indirectly undermine the autonomy of Hong Kong.” In addition, the U.S. restricted the entry of graduate students and scholars from China, which could pose a threat to American national interests.The first statement Donald trump residents responded to 7.5 million Hong Kong. After crossing under the jurisdiction of China under the formula of “one country, two systems” in 1997 the former British colony has kept its own financial system and its currency, Hong Kong dollar, which since 1983 is rigidly pegged to the us dollar (the course is supported by the established corridor of 7.75 to 7.85 to one US dollar).The desire to get rid of Hong Kong dollars to insure their savings, caused by fears of possible changes in monetary policy, in particular the unbinding of the Hong Kong dollar to the us, as well as the negative effects of U.S. sanctions. Panic continues, despite clarification of the local regulator that the forthcoming national security law of Hong Kong, the path to the development and adoption of which was opened last week by the all-China Assembly of people’s representatives, the resolution will not affect its financial system.Another sign of the “messy divorce” with Hong Kong on Sunday was a report by Bloomberg, citing an e-mail the US state Department that Washington puts on the sale of American property in one of the prestigious districts of the metropolis, acquired in 1948. Owned by USA land and several luxurious mansions in the South island part of Hong Kong worth $1.3 billion are considered to be an American hallmark in the former British colony.”Any limitations will also undermine and��interests of American companies in Hong Kong,” he recalled Monday in an interview with the newspaper Standard, the financial Secretary of Hong Kong Paul Chan. According to him, the United States have a huge surplus in trade with Hong Kong, which is the third largest market for American wines and the fourth for beef. At the same time, the share of direct exports from Hong Kong in the U.S. is “less than 0.1% of the total volume of all shipments”.In Hong Kong are 1.3 thousand American companies working in the spheres of trade, Finance and services. In General, until recently, Hong Kong has played a bridging role in business connections between China and the United States: American companies working with China, were opening their Bank accounts.According to Paul Chan, the American sanctions also will not be able to undermine the status of Hong Kong as an international financial centre and will not disrupt the free movement of capital. “The current system of currency peg in 1983 have passed a lot of tests,”— said the representative of the local administration, drawing attention to the fact that the massive foreign capital outflow occurs.Given that sanctions against Hong Kong was not as significant and did not affect the main trade agreement between the US and China, the first phase of which was signed in January, Asian markets are recovering from the shock. Stock indexes on Monday went up: China’s Shanghai Composite rose 2.2%, Hong Kong’s Hang Seng — by 3.4%.As said Sunday in an interview with the BBC, the British foreign Secretary Dominic Raab, the British side is not waiting for the mass Exodus to the United Kingdom, but intends to make it easier for Hong Kong residents enter the country. “Our assumptions are based on the fact that many will want to stay in Hong Kong, and some will move to other countries in the region. But it is a question of principle. We have obligations to the people of Hong Kong, and we won’t pretend that do not notice what is happening,” said Dominic Raab. His statement was preceded by a Friday conversation of the President of trump with the British Prime Minister Boris Johnson, the results of which the parties reiterated that the draft law on the safety of Hong Kong violates the principle of “one country, two systems” and undermine its autonomy.Currently 315 thousand Hong Kong residents have the status of British citizens abroad, which they managed to get together with a special passport, since 1987, when Hong Kong remained a British colony. Nearly 3 million Hong Kong residents born before its transition to the jurisdiction of China in 1997, have the right to issue a passport to a British citizen. This passport is not equal to British citizenship — his owners do not have the right to permanently reside on the territory of the United Kingdom, however, can visit the country without a visa, ��stavas for up to six months. Now the British side is ready to allow his subjects from Hong Kong to remain in the Kingdom during the year to study and work, with the possibility of extension of period of stay and British citizenship. In Beijing, say they are ready to take counter actions against London, without specifying, however, what steps may be involved.”Although U.S. sanctions have not been as significant as it could be, the Hong Kong party is in the beginning. While all parties outlined their positions and conducted reconnaissance. Because the national security law of Hong Kong has not even adopted — the all-China Assembly of people’s representatives has only decided about the necessity of such a law. For its preparation will take several more months and it will be accepted not earlier than autumn. Much will now depend on how the situation will develop in Hong Kong and what will be the final version of the law”,— said “Kommersant” Deputy Director of IMEMO ran Alexander LOMANOV. According to experts, in case of further escalation, the West will have to react. It is very likely that in the midst of the U.S. presidential race Donald Trump need a new hard steps against China. “When you chop wood in us-China relations, Hong Kong will inevitably fly all the new chips. However, he is turning into another bone of contention in relations with the West”,— concluded the expert.Sergey Strokan
