Why will a revoked Hong Kong special status affect the bilateral trade between the United States and Hong Kong with trillions of dollars, 85,000 American livelihoods in Hong Kong, and over 1,300 American businesses in Hong Kong? Those are the challenges:
Immigration and travel: an easy access to one of Hong Kong's selling points. Americans can enter Hong Kong without a visa and travelers are able to fly in and out of town quickly and easily. A reversal of China's visa rules could make travel and immigration easier.
Trade: Hong Kong may lose its preferential lower U.S. export tariff rate and zero import rate for goods from the United States, with an annual trade effect of $66 billion. A withdrawal from special status might lead to higher tariffs and the trade war between the United States and China would sweep Hong Kong up.
Financial transactions: the US dollar is freely exchanged for the Hong Kong dollar, and this might change if the special status of Hong Kong is withdrawn. Hong Kong investment firms in the United States may also be more scrutinized.
Technology: Hong Kong has a system of export control and the City must ensure the sensitive technology from the United States, under the U.S.-Hong Kong Political Act, is "safe against misuse or sale" and not going illegal via Hong Kong to the mainland.
If the special status of Hong Kong is repealed, the US might restrict technology without a license to Hong Kong and potentially take away one of the advantages of Hong Kong as a business center in the mainland China.
The special status of Hong Kong is also promoting and permitting a number of possible educational and academic exchanges between Hong Kong and the United States.
All above could change.
On 27 November 2019, with bipartisan support the Hong Kong Human Rights and Democracy Act was passed, requiring the State Department to annually certify that Hong Kong has sufficient autonomy to support its favorable business relations with the United States.
On 27 May 2020, State Secretary Mike Pompeo stated that Hong Kong had been "not autonomous any longer," jeopardizing its "special status."
President Trump last week announced that, but did not give a schedule or specifics, he would be revoking the special status of Hong Kong.
