CCP’s Attempt to Restore Hong Kong’s International Image Is All but Superficial: US Report

The "U.S.-China Economic and Security Review Commission," a think tank under the U.S. government, issued a report stating that Beijing's authoritarian overreach has caused Hongkongers leaving en masse. File picture. (Sung Pi-Lung/The Epoch Times)

After members of the U.S. House and Senate introduced the bipartisan “Hong Kong Sanctions Act” earlier this month, naming 49 Hong Kong political and legal personnel, the “U.S.-China Economic and Security Review Commission” (USCC) released its annual report on Nov. 15, calling Hong Kong Chief Executive John Lee Ka-chiu, describing him as “the executor of CCP’s interests.” The report also claims that while Beijing is trying to restore Hong Kong’s international image, this effort is all but superficial, which is no more than to attract overseas investment.

The report also recommends that the U.S. government sanctions those individuals involved in curbing Hongkongers’ emigration freedoms, including those who restrict overseas Hong Kong residents from retrieving their retirement funds. It also suggested that the U.S. Congress should consider taking action to prevent U.S. financial institutions from infringing on Hong Kong’s immigration freedom at the behest of the Hong Kong government and commit to actions such as withholding their legal retirement funds, including the Mandatory Provident Fund (MPF). The report also requires the U.S. Congress to assess the constraints on Hong Kong’s judicial independence and impose sanctions on relevant individuals accordingly, including foreign national judges who serve on Hong Kong’s Court of Final Appeal.

The report has six (five main plus one on recommendations) chapters, starting with Chapter 1: Year in Review for an examination of the U.S.-China economic, trade, and diplomatic relations over the past year, followed by subsequent chapters (2 to 5) on China’s effects to subvert norms and exploit open societies; potential risks to China’s future economic competitiveness; China seeking military influences and advanced capabilities; changing relations with Europe, Taiwan, and Hong Kong; and ends with a comprehensive list of the Commission’s recommendations.

HKCE Named Executor of CCP’s Interests

Regarding Hong Kong, the report directly names Hong Kong Chief Executive John Lee Ka-chiu as “the executor of the interests of the CCP,” which has reversed the democratic system and civil society that Hong Kong once enjoyed, allowing the CCP overriding control over all of Hong Kong’s politics, judiciary, religion, and education system.

The report points out that Hong Kong is now under complete control of mainland China. With this in place, Beijing continues to change Hong Kong’s system at will, eliminates Hong Kong’s once vibrant civil society, and appoints judges and key officials loyal to Beijing, and by tightening the Hong Kong National Security Law (NSL), taking into its hand the interpretation, and the implementation of the NSL “beyond its jurisdiction” and destroys Hong Kong’s legal system. The report cited the Jimmy Lai case and the 47-person case in the pro-democracy primaries for the Legislative Council election as examples, saying it reflected the regression of Hong Kong’s judicial system and the complete erosion of civil liberties.

Judiciary Regressed, Civil Liberties Completely Eroded

At the same time, the report stated that Hong Kong’s religious communities, trade unions, and journalists are also facing increasing repression and intimidation, and their ability to participate in civil society is restricted.

The report mentioned that Beijing’s authoritarian overreach has caused the mass exodus of Hong Kong people. Those who choose to stay must decide whether to conduct self-censorship or risk political legal proceedings. This is a practice that was once commonplace and protected by law in Hong Kong, and now they might face punishment for doing so.

The report also stated that the Hong Kong government is conducting extraterritorial law enforcement, accusing individuals overseas on grounds of national security, placing bounties on overseas pro-democracy activists, and trying to intimidate their families.

Two Recommendations Urging US Congress and Government to Act

The report also makes two recommendations as follow-up actions by the U.S. Congress.

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The first is that Congress should direct the U.S. Department of State to include in the annual report required by the Hong Kong Autonomy Act passed in 2020, information on the Hong Kong government’s restrictions on émigrés’ (Hong Kong residents’) access to their financial accounts in Hong Kong, including from the government-run MPF fund, which had been restricted from their ​​withdrawals. The U.S. government should then impose sanctions on individuals involved in limiting freedom of emigration, as authorized by the Hong Kong Autonomy Act. At the same time, the U.S. Congress may consider further steps to prevent U.S.-based financial institutions involved in managing the funds of Hongkongers from aiding in violating freedom of emigration by withholding pension funds from their rightful owners at the behest of the Hong Kong government.

Second, it is recommended that Congress amend the Hong Kong Autonomy Act to include in its annual report an evaluation of limitations on Hong Kong’s judicial independence, and specifically examine whether the Hong Kong chief executive or any other body acting on behalf of China’s government has exercised undue influence on Hong Kong’s judicial system in ways that violate the rights to a fair and independent trial guaranteed under the Basic Law of Hong Kong. Based on the findings of the report, Congress may impose sanctions on individuals serving in Hong Kong’s judiciary, including foreign national judges who serve on the Hong Kong Court of Final Appeal.

HK Becoming One Transshipment Center for US Technology to Russia

The report also believes that as Hong Kong’s foreign companies and Hongkongers evacuate and move to other places, Hong Kong is seeking to lure more enterprises and talents from mainland China to revitalize Hong Kong’s currently lukewarm economy. With mainland China’s manpower and investment pouring into Hong Kong and strengthening its monopoly on Hong Kong’s business environment, there is an increasing dependence on the mainland to consolidate Hong Kong’s status as another Chinese city rather than an international city. Beijing’s attempts to restore Hong Kong’s international image are all but superficial and try no more than just attracting overseas investment.

Although Hong Kong’s role as an international business hub has declined, it remains important to Beijing’s economic ambitions, especially as a link between mainland China and international financial markets. The report cited gathered intelligence that Hong Kong has become a transshipment center for the transfer of U.S. technology to Russia, and Hong Kong companies have worked with China to aid Russian technology supply chains.​