‘Anti-sanctions law won’t drive away businesses’

Liberal Party leader Felix Chung on Thursday dismissed suggestions that foreign businesses will leave Hong Kong when the SAR adopts the mainland’s anti-sanctions law.

On a radio programme, Chung called the anti-sanctions law a “weapon” that will strengthen Hong Kong’s bargaining power, adding that foreign governments will also think twice before imposing further sanctions.

“If Hong Kong and China have an equal weapon, then our negotiating power or the considerations others have to make when they target us would be much higher,” he said.

Chung also noted that former US president Donald Trump had exchanged threats of sanctions and counter-sanctions with the European Union, and no companies had moved their operations as a result.

Speaking on the same show, the lawmaker representing the finance sector, Ronick Chan, said some businesses in his sector are worried they might unwittingly fall foul of the anti-sanctions law.

Chan said banks might as a result limit dealings with politically sensitive figures to avoid risks.

But he said if the law is introduced by way of local legislation, the process can help address his sector’s concerns and clear up misunderstandings, adding that businesses can also express their views before the law is passed.

Later this month, the National People’s Congress Standing Committee is expected to discuss how to extend to Hong Kong the national law which allows tit-for-tat measures against foreign sanctions on Chinese nationals or entities.

Chief Executive Carrie Lam has said she prefers to have the law incorporated into Annex III of the Basic Law by way of local legislation – instead of it being promulgated directly.