A series of what might normally be seen as typically forgettable chamber of commerce events has attracted controversy because of the where factor.
People are talking about the American Chamber of Commerce (AmCham) in Hong Kong, which from next month will hold a 10-month-long series of events in which members will look ahead at what the next 25 years will hold for the financial hub.
The events were announced after Hong Kong cut the number of days for incoming travelers to quarantine at designated hotels from seven to three days. What’s planned is controversial as political tensions between Washington and Beijing remain high, particularly regarding Hong Kong, Taiwan and Xinjiang issues.
Some critics have complained that AmCham is helping the government promote Hong Kong while ignoring the fact that the city’s civil society had been crushed by the National Security Law over the past two years.
AmCham has not yet managed to reply to media inquiries.
Tensions between AmCham Hong Kong and the Hong Kong government had previously increased when then-AmCham President Tara Joseph last November announced her resignation as the city refused to ease Covid-19 restrictions. At that time, incoming travelers were required to be isolated in hotels for 21 days.
Joseph said she could not appeal to the Hong Kong government to ease Covid-19 restrictions while having to undergo quarantine herself. She said she would stay in her position for six more months to give AmCham time to find a new president.
In response to the pressure from the business community – and despite a huge virus outbreak that infected more than one million people within weeks in February – the Hong Kong government did lower the quarantine period for incoming travelers to 14 days in early February and further down to seven days in April.
Even so, in May this year, AmCham said 42% of respondents of its survey were considering or planning on moving out of Hong Kong due to the city’s tough quarantine rules.
AmCham said in late March that Eden Woon, former director of the Hong Kong General Chamber of Commerce, would become its new president from September 1. It also said last month the chamber would foster closer US-Hong Kong ties.
AmCham said last week on Meta, formerly known as Facebook, that it would jointly hold a program called Onward Hong Kong between September 2022 and June 2023 to “explore the key challenges and opportunities that remain for Hong Kong.”
AmCham chairman Joseph Armas said: “AmCham has played a crucial role in advocating for the business community throughout Hong Kong’s history. AmCham will facilitate discourse on issues with the government while eyeing opportunities in Hong Kong
“With the general pessimism reflected in our 2022 Business Sentiment Survey, we believe it is imperative to address concerns, but also renew optimism with emerging opportunities for this prosperous and dynamic city,” the chamber said.
AmCham said in its 2022 Business Sentiment Survey published in January that eight out of 10 businesses’ operations had felt the impact of the National Security Law – particularly in the loss of employees who had emigrated and the lowered morale of remaining staff.
According to the survey, nearly 60% of respondents said Hong Kong’s rule of law had worsened in the previous 12 months, and 23% did not feel confident regarding the city’s rule of law. Moreover, 86% of companies said declining US-China relations had had some impact on their businesses, leading to uncertainties in their outlooks.
“There is also a general pessimism about the outlook for improved US-China relations,” AmCham said then.
National Security Law
Since Beijing implemented the National Security Law in Hong Kong on June 30, 2020, the US has imposed several rounds of sanctions on Hong Kong and Beijing officials as well as Chinese companies.
On June 28 this year, the US Commerce Department’s Bureau of Industry and Security (BIS) said 36 entities had been added to its Entity List for acting contrary to the United States’ national security and/or foreign policy interests. Among them, 25 have China-based operations while five are Hong Kong companies.
Adding to the sour mood was a negative tweet from US Secretary of State Antony Blinken on June 30: “July 1 marks the 25th anniversary of the handover of Hong Kong to the People’s Republic of China. Hong Kong and Beijing authorities have broken their promises to Hong Kongers.”
Last month, the American Congressional-Executive Commission on China in a report named 15 Hong Kong prosecutors, accusing them of infringing on the universal human rights of a wide range of Hong Kong people.
The Hong Kong and central governments accused the US of interference in Hong Kong affairs.
On August 11, the Census & Statistics Department said Hong Kong’s population had fallen 1.6% to 7.29 million as of the middle of the year from a year earlier. Chief Executive John Lee, a former police officer, declined to describe the trend as an emigration wave but said it’s natural for people to move in and out.
Over the past two years, more than 100,000 Hong Kong people have moved to the United Kingdom on British National Overseas passports while some others have moved to Canada and Australia. Others have left Hong Kong temporarily, due to strict Covid rules.
The Hong Kong Investment Funds Association said Tuesday that 35% of its members had already moved some of their staff and headcount out of Hong Kong due to the city’s strict Covid measures. It said 55% of its members did not cut staff in Hong Kong but added some employees in other places.
It added that one-fifth of its members had to pay special allowances to employees who work in Hong Kong.
Last Thursday, Meta announced its plan to sponsor the Onward Hong Kong program. Other organizers included Alliance Bernstein, Citibank, Pfizer and Uber.
George Chen, managing director for public policy at Meta, who also sits on the board of AmCham, said: “The new thought leadership series also demonstrates Meta’s long-term commitment to Hong Kong’s social and economic development.”
Chen said the events would bring together those who care deeply about the future of Hong Kong to share their insight and advice to make Hong Kong an even better home in the future.
Some commentators and netizens slammed Meta and AmCham for organizing the Onward Hong Kong events, which invited only pro-Beijing politicians while shunning pro-democracy activists.
Yan Yirui, deputy commissioner at China’s Foreign Ministry in Hong Kong, and Jasper Tsang, former president of the Legislative Council, are among the events’ speakers.
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Follow Jeff Pao on Twitter at @jeffpao3