Some Economic Issues concerning the Loss of the Special Status Relationship between the United States and Hong Kong

Abstract

The demonstrations in 2019, 2020 and thereabouts for the preservation of certain civil rights in Hong Kong, led to some suppression by the Chinese National central government. As a result, some of the special trade advantages between Hong Kong and the U.S. were lost. The economics and cultural special traits helped Hong Kong thrive. Having a judicial system separate from that of Mainland China, allowed for a more commerce producing judiciary. A key requirement for Hong Kong to be treated differently than Mainland China was for Hong Kong to have some independent autonomy, sufficient for the U.S. to see Hong Kong as a separate area politically from Mainland China. In July 2020, the U.S. made the formal decision to take away Hong Kong’s special status, because a sufficiently independent Hong Kong no longer exists. This article examines the history of this phenomena and the results of having that special trade policy changed. Data from recent years show how the economy with Hong Kong and trade with Hong Kong has changed. Unfortunately, some cultural ties and exchanges between the United States and Hong Kong have also been curtailed. These changes regarding cultural ties are beyond the scope of this article. In regard to Chinese support for the United States, Ukraine and NATO, Ukraine in the war between Ukraine and Russia, this should be pointed out. China should support Ukraine, since it is in China’s best interest, and it is the right action to take.