China and Hong Kong condemn US committee for backing bill that could lead to shutdown of city’s representative offices in country

The office said the act called for the termination of the privileges held by Hong Kong’s economic and trade offices in the United States and their closure.

It added the move was a clear intervention in Hong Kong and Chinese internal affairs.

The office warned that China would “resolutely” defend its rights.

“We advise the United States to clearly understand the situation, correct its position, and avoid self-inflicted setbacks,” the statement said.

“Do not start any trouble, do not cross the line, use solid action to return to the correct path of promoting mutual trust and cooperation between China and the United States, and give up on oppressing China, as well as oppressing China through Hong Kong.”

The proposed law was among several pieces of legislation designed to target China cleared by the US committee on Wednesday.

If the bill became law, it would require the White House to “remove the extension of certain privileges, exemptions and immunities” given to Hong Kong’s representative offices if it decided that the city no longer had a high degree of autonomy.

The legislation, sponsored by New Jersey Republican congressman Chris Smith, is expected to advance to the full House of Representatives for a vote.

A Senate version of the bill was approved by its foreign relations committee in July, but is still awaiting a vote on the floor.

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The Beijing office’s statement was released after the Hong Kong government on Thursday morning condemned the passage of the legislation by the house committee.

“That act is factually wrong,” the statement said. “It aims to achieve political objectives by smearing and attacking the work of the Hong Kong economic and trade offices in the US on promoting mutually beneficial economic and trade relations and cultural exchanges between Hong Kong and the US.

“The HKSAR government strongly condemned such attempts to damage trade relations owing to individual political interests, and sternly urged the US not to violate again the basic norms governing international relations and to stop political smears and attacks … and interfering in Hong Kong matters.”

If both chambers of Congress pass the bill and US president Joe Biden signs it, the American leader would be required to explain to Congress why the city’s offices in the US should retain or lose their diplomatic privileges, which were granted under the Hong Kong Policy Act of 1992.

The policy act came into force before Britain returned Hong Kong to China in 1997 and was intended to preserve American trade and keep privileges the city enjoyed in place after the handover.

The city’s three representative offices in the US – in Washington, New York and San Francisco – would be required to close within 180 days if the president opted for decertification.

Both versions of the bill include a “disapproval resolution” clause that would allow Congress to override the president’s assessment and force the offices to close.

Hong Kong authorities said the three offices had close contact with the US government, businesses, think tanks and various sectors to boost ties between the city and the country in areas such as trade, investment, arts and culture.

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Officials added that the offices contributed to the strengthening of cooperation between the city and the US.

The Hong Kong government said the US had enjoyed a trade surplus of US$284.9 billion with Hong Kong over the past 10 years, the largest among its global trading partners, and more than 1,200 American companies had set up businesses in the financial hub.

“If the US insists on undermining the mutually beneficial relations between Hong Kong and the US through the so-called Hong Kong Economic and Trade Office Certification Act, it will ultimately harm the interests of the US and its companies,” city authorities said.

The government added the three US offices would continue to promote Hong Kong’s strengths, combat inaccurate reports and clarify misconceptions to help foster good economic relations and cooperation between the city and the US.

Lau Siu-kai, a consultant to Beijing’s semi-official think tank, the Chinese Association of Hong Kong and Macau Studies, said the move was not one that came from the American government, but was the product of “unfriendly actions” by anti-China politicians.

“In the context of a heated anti-China atmosphere on the eve of the US presidential and congressional elections, it is predicted that the American president will be forced to sign it into law,” he added.

But Lau said that there would be little damage done if the bill became law and Hong Kong’s representative offices were closed because other government bodies would be able to take over their work.

He added that diplomatic affairs could also be handled by China’s embassies and consulates in the country.