Defense Priorities Defense Priorities
  • Policy Topics
    • Ukraine-Russia
    • NATO
    • China
    • Syria
    • Israel-Iran
  • Research
    • Briefs
    • Explainers
    • Reports
  • Programs
    • Grand Strategy Program
    • Military Analysis Program
    • Asia Program
    • Middle East Program
  • Experts
  • Events
  • Media
  • About
    • Mission & Vision
    • People
    • Jobs
    • Contact
  • Donate
Select Page
Home / China / State Department designation punishes Hong Kong for Beijing’s harmful policies
China, Asia

May 27, 2020

State Department designation punishes Hong Kong for Beijing’s harmful policies

By Benjamin Friedman

FOR IMMEDIATE RELEASE:
May 27, 2020
Contact: press@defensepriorities.org

WASHINGTON, DC—Today, The New York Times reported the State Department no longer considers Hong Kong to have significant autonomy from the government in Beijing. Defense Priorities Policy Director Benjamin H. Friedman issued the following statement in response:

“The announcement that the State Department no longer considers Hong Kong to be autonomous is an understandable effort to protect the partial independence Beijing promised when the city-state reverted to Chinese rule in 1997—but one likely to prove counterproductive. Trying to protect Hong Kong from China’s authoritarianism this way effectively punishes Hong Kong for China’s sins. The economic loss for Hong Kong and some U.S. firms would be heavy, while China’s harsh policies toward Hong Kong—let alone anywhere else—are unlikely to change.

“A situation like this—where a powerful rival threatens the liberties of a weak entity—should upset everyone with liberal sentiment. But it is difficult to translate sympathy into useful remedies. Eager to ‘do something’ when our conscience is provoked, but military means seem far too risky, we turn too easily to sanctions, a gesture of solidarity that rarely works. Whether or not revoking Hong Kong’s special trading rights counts as sanctions, it would harm mostly the people it’s meant to help.

“Under U.S. law, Hong Kong’s special status depends on it being certified as ‘sufficiently autonomous.’ It gets zero U.S. tariffs on exports, which it first enjoyed under British rule. With China moving to undercut its commitment to the ‘one country, two systems’ model it promised in 1997, Pompeo’s announcement is a warning the administration will revoke Hong’s Kong’s status if China goes ahead. In that sense, it is an understandable gambit.

“But China is unlikely to change course. If the U.S. revokes Hong Kong’s status, it is hard to see how either Hong Kong or Americans will benefit. Hong Kong’s special status helps generate an estimated $67 billion of annual trade of goods and services with the U.S. Because of Hong’s more open market access and proximity to China, it is also a hub for the thousands U.S. companies doing business there. Changing Hong Kong’s status will not only undercut Hong Kong’s exports and harm its economy, but also invite Chinese retaliation, like changing the rules benefiting U.S. firms there. Mainland China will suffer a bit but probably not enough to substantially change Beijing’s calculus.

“The alternative—relying on moral suasion and diplomacy, tying Hong Kong’s status to U.S. China trade talks—is also unlikely to work. But that attempt would at least avoid creating circumstances that might cause significant economic harm to the people of Hong Kong, and U.S. businesses, in a long shot bid to coerce China.”

Author

Photo of Benjamin Friedman

Benjamin
Friedman

Policy Director

Defense Priorities

More on China

ExplainerTaiwan, Asia, China

Will the U.S. go to war over Taiwan?

By Jennifer Kavanagh

September 15, 2025

op-edTaiwan, Asia, China

Here’s how Trump can prevent a war over Taiwan

By Jennifer Kavanagh

September 15, 2025

pollTaiwan, Asia, China

Expert survey: Will the U.S. defend Taiwan?

By Jennifer Kavanagh

September 15, 2025

In the mediaChina, Asia, Military analysis, Naval power

U.S.-China rivalry sparks a submarine arms race

Featuring Jennifer Kavanagh

September 8, 2025

op-edTaiwan, Asia, China

Is an amphibious invasion of Taiwan really imminent?

By Gil Barndollar

August 20, 2025

In the mediaChina, Asia, Taiwan

China’s catastrophic South China Sea crash shows how dangerous high-risk moves at sea can be

Featuring Lyle Goldstein

August 16, 2025

Events on China

See All Events
virtualGreat power competition, Balance of power, China, Grand strategy, Middle East

Past Virtual Event: U.S.-China competition and the value of Middle East influence

June 10, 2025
virtualChina, Alliances, Balance of power, Diplomacy, Grand strategy, Russia

Past Virtual Event: China-Russia: Cooperation or a no-limits alliance?

April 3, 2025
virtualAsia, Basing and force posture, Burden sharing, China, Grand strategy

Past Virtual Event: Rethinking U.S. strategy in East Asia: do more bases mean more deterrence?

January 24, 2024

Receive expert foreign policy analysis

Join the hub of realism and restraint

Expert updates and analysis to enhance your understanding of vital U.S. national security issues

Defense Priority Mono Logo

Our mission is to inform citizens, thought leaders, and policymakers of the importance of a strong, dynamic military—used more judiciously to protect America’s narrowly defined national interests—and promote a realistic grand strategy prioritizing restraint, diplomacy, and free trade to ensure U.S. security.

  • About
  • For Media
  • Jobs
  • Donate
  • Privacy Policy
  • Terms and Conditions
  • Contact
© 2025 Defense Priorities All Right Reserved