September
2024
The U.S. House of Representatives passed the Hong Kong Economic and Trade Office Certification (HKETO) Act (H.R. 1103), which could lead to the closure of Hong Kong's trade offices in the U.S. If enacted, the U.S. Secretary of State would have to review these offices' legal rights and exemptions on an annual basis and certify whether they continue to operate with a "high degree of autonomy" from the Chinese government. In the event that the Secretary of State refuses to certify this, the offices will be forced to cease their U.S. operations within six months.
Hong Kong Chief Executive John Lee issued a strong criticism of the recently approved HKETO Act, calling it "shameless and ugly” and claiming that the act aims to stifle the growth of both Hong Kong and the Chinese mainland by undermining the city's national security laws and fabricating its human rights record. Lee stressed that this action would eventually damage commercial relations between the United States and Hong Kong, implying that American companies would bear the brunt of the bill's consequences. These attacks were also echoed by the spokesperson for China's embassy in the United States, who condemned the action as politically motivated suppression of Hong Kong's development.
Politicians in the United States have raised concerns that the HKETO is being used by the Chinese government as a backdoor for foreign influence, as documented in HKDC’s report The Counter-Lobby Confidential. If the legislation proceeds, the governments of China and Hong Kong have both stated that they will react with "strong and resolute measures."
Summary
This measure is a reflection of the escalating tensions between the United States and China, particularly as they relate to recent developments in Hong Kong.
Concerns about the HKETO offices' possible involvement in Chinese state-sponsored infiltration and propaganda campaigns have led to an increasing level of suspicion about them in the United States. These offices are considered as devices for furthering Beijing's favored propaganda narratives and spreading influence under the cover of their official mission of promoting trade and business relations. To hide the degradation of civil liberties and human rights that has occurred since the implementation of the National Security Law and Article 23, this propaganda strategy aims to portray Hong Kong as a thriving, free city—a regional beacon of freedom and a prosperous hub for international finance.
John Lee’s response indicates the fear of the HKSAR government regarding the effect of the bill, which will damage the regime’s international legitimacy and stymie their US propaganda efforts. At the same time, the growing calls to scrutinize the activities of the HKETOs show that the CCP is taking a risk by carrying out these foreign influence efforts, since they could further antagonize other countries and endanger Hong Kong’s already-flagging standing as a major international financial center.
Analysis
