Two UK banks, HSBC and Standard Chartered, have been criticized for openly backing a new law in Hong Kong that gives sweeping powers to the Chinese Communist Party.
HSBC’s senior executive in Asia, Peter Wong, on Wednesday signed a petition posted on social media, along with a statement saying Beijing’s so-called national security law “would stabilize Hong Kong’s social order.”
UK-based Standard Chartered later said it thought the law would “bring stability” to Hong Kong. Both banks, which are headquartered in London, came under pressure to back the new law.
The banks have been put in a challenging position because of their business interests in Hong Kong.
Martin Lee former lawmaker and founder of Hong Kong’s Democratic Party said that if the banks didn’t follow Beijing’s orders “then China would hit them in every way to make it more and more difficult for them to do business in Hong Kong, and certainly in China too,” at a Friday webinar organized by foreign policy think tank Henry Jackson Society.
He added, “They summoned all our tycoons to Beijing, and each of them had to follow suit. … They look at their business and say, what do we do?”
“There appears to be some quiet threats from the Chinese government. They are very good at giving quiet threats if you don’t conform,” former UK foreign secretary Sir Malcolm Rifkind said at the webinar.
“The public and particularly those who use HSBC will make up their own minds with that bank, given its behavior.”
‘Other Banks Are Available’
The banks’ stance is at odds with the United States and UK governments, which have both spoken out against the proposed Beijing law.
Conservative lawmaker Neil O’Brien said on twitter that HSBC is “backing Beijing’s repressive new security laws, designed to snuff out freedom in Hong Kong.” He added that: “Other banks are available.”
The Chair of the UK Foreign Affairs Committee questioned why the two banks chose to “back an authoritarian state’s repression of liberties.”
UK Labour lawmakers also criticized the move. The Shadow Foreign Secretary and Shadow Finance Minister wrote letters to the CEOs of HSBC and Standard Chartered on Friday urging the banks to rescind their support for the new law.
“Quite apart from the morally abhorrent nature of the statement, we also find HSBC’s support for the autocratic actions of the Communist Party of China to be completely at odds with the values framework in which financial institutions should be operating,” the letter said.
Democracy campaigners fear the law will bring Communist censorship to Hong Kong.
HSBC was under pressure from Beijing last summer, after Chinese authorities learned that the bank handed documents to the U.S. Department of Justice about its relationship with Chinese telecom company Huawei. The information helped to build a case that led to the arrest of Huawei’s Chief Financial Officer, Meng Wanzhou.
New Law ‘a Violation’ of Joint Declaration
HSBC’s announcement was brought up by British lawmakers in a Thursday House of Lords debate on Hong Kong. The UK’s human rights minister wouldn’t comment on it specifically, but he reiterated that he hoped that China would think again before enacting the “national security” law in Hong Kong.
“The UK and its partners have been clear to China. Imposing this national security legislation would be a clear violation of China’s international obligations, including those made to the United Kingdom under the joint declaration,” said the UK’s human rights minister, Lord Tariq Ahmad.
Prime Minister Boris Johnson said Britain will not walk away from the people of Hong Kong, confirming on Wednesday he would extend visa rights to Hong Kong citizens, eligible for a British National (Overseas) passport. It means about 2.9 million Hongkongers could stay in the UK without a visa for up to 12 months.
