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Trump’s Removal of Hong Kong’s Special Status Hurts the US More Than China
Mary Lovely is a professor of economics in the Maxwell School.
In a commentary for CNN Business, Lovely says that President Trump’s intention to eliminate Hong Kong’s special status under U.S. law will do little to pressure China to maintain the city’s autonomy under China’s “one country, two systems” policy, but rather will hurt Hong Kong and the more than 1,300 U.S. businesses that operate in the city.
“Along with higher tariffs on goods they ship back to the United States, these businesses may in time be subject to stricter controls on access and use of American technology. American business travelers may lose visa-free access to the city, a possible retaliatory response by Beijing to the removal of Hong Kong’s special status,” Lovely writes. “Perhaps most importantly, a failure to maintain Hong Kong’s special status represents a missed opportunity to pressure China as it contemplates stricter control over the tax, regulatory and legal systems to which American businesses are subject.”
Lovely’s full commentary is available on the CNN website.
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