Two influential European business lobby groups have spoken out against China’s national security law on Hong Kong, which has just been endorsed by China’s ceremonial legislature. Germany is now under pressure to act, ahead of the EU foreign ministers’ meeting tomorrow. Thread:

European Union Chamber of Commerce in China, chaired by Joerg Wuttke: “Steps taken by either the local authorities or the central government in Beijing that undermine the integrity of the ‘one country, two systems’ model would damage business confidence ... /1

... not only for European companies present in the SAR, but also those in Mainland China.

The European business community has leaned heavily on Hong Kong as a centre for business in large part because of the high degree of autonomy granted by this arrangement. /2

Without the resulting rule of law, individual liberties, independent judiciary, high level of transparency and the free flow of talent, goods and capital, the allure of this important city will be greatly diminished. /3

The European business community therefore has significant interest in maintaining the unique level of autonomy in the SAR. /4

Importantly, this model was derived from international agreements that led to the return of Hong Kong to the People’s Republic of China. The European business community is concerned that undermining Hong Kong’s autonomy will negatively impact China’s diplomatic standing. /5

This could seriously affect ongoing negotiations between the EU and China on a variety of critical areas such as the Comprehensive Agreement on Investment and on issues of common concern like climate change. /6

BDI, Germany’s biggest and most influential industry lobby on Hong Kong: “German industry looks with concern at the political and social tensions in Hong Kong. The Security Law passed by the National People's Congress will significantly increase ... /7

... the Chinese central government's rights of intervention in Hong Kong and Macao and further exacerbate the tense situation. For European companies in Hong Kong, the rights promised in the Basic Law were decisive factors in encouraging them to settle there. /8

These include political self-government, free trade, a judiciary independent of the mainland and fundamental freedoms such as freedom of expression, the press and assembly. /9

The undermining of the Basic Law could have a significant negative impact on confidence in Hong Kong as a business location. China must not carelessly lose its international credibility. The '1 country, 2 systems' principle must continue to apply and be put into practice." END