Hong Kong officials lashed out on Saturday at moves by U.S. President Donald Trump to strip the city of its special status in a bid to punish China for imposing national security laws on the global financial hub.
Speaking hours after Trump said the city no longer warranted economic privileges and that some officials could face sanctions, security minister John Lee told reporters that Hong Kong could not be threatened and would push ahead with the new laws.
"I don't think they will succeed in using any means to threaten the (Hong Kong) government, because we believe what we are doing is right," Lee said.
Justice minister Teresa Cheng said the basis for Trump's actions was "completely false and wrong", saying national security laws were legal and necessary for the former British colony.
In some of his toughest rhetoric yet, Trump said Beijing had broken its word over Hong Kong's high degree of autonomy from Beijing, by proposing the national security legislation and that the territory no longer warranted U.S. economic privileges.
"We will take action to revoke Hong Kong's preferential treatment as a separate customs and travel territory from the rest of China," Trump said, adding that Washington would also impose sanctions on individuals seen as responsible for "smothering - absolutely smothering - Hong Kong's freedom".
Trump told reporters at the White House that China's move was a tragedy for the world, but he gave no timetable for the moves, leaving Hong Kong residents, businesses and officials to ponder just how far his administration will go.
The American Chamber of Commerce in Hong Kong said Saturday marked "a sad day" for China's freest city. "This is an emotional moment for Americans in Hong Kong and it will take companies and families a while to digest the ramifications," AmCham President Tara Joseph said in a statement.
"Many of us ... have deep ties to this city and with Hong Kong people. We love Hong Kong and it's a sad day," she said, adding the chamber would continue to work with its members to maintain Hong Kong's status as a vital business centre.
Britain returned Hong Kong to China in 1997 under a "one country, two systems" formula, with the guarantee of many freedoms, including the right to protest and an independent judiciary, not enjoyed on the mainland.
Chris Patten, the last British governor, said Chinese President Xi Jinping was so nervous about the position of the ruling Communist Party that he was risking a new Cold War with his "thuggish" crackdown in Hong Kong.
(For an explainer on how important Hong Kong is to China as a free finance hub, please click)
China's parliament this week approved a decision to create laws for Hong Kong to curb sedition, secession, terrorism and foreign interference. Mainland security and intelligence agents may be stationed in the city for the first time.
Authorities in Beijing and Hong Kong insist the legislation will target only a small number of "troublemakers" who threaten China's national security. They say such action is urgently needed after months of sometimes violent anti-government, anti-China protests rocked the city last year.
Protests are simmering again as Hong Kong emerges from its coronavirus shutdown. Demonstrators are expected to take to the streets on Sunday.
Trump did not name any sanctions targets but said the announcement would "affect the full range of agreements we have with Hong Kong", including the U.S.-Hong Kong extradition treaty to export controls on dual-use technologies and more "with few exceptions".
An editorial in the People's Daily, the official newspaper of China's Communist Party, said some external forces with ulterior motives have been issuing so-called "Hong Kong-related statements" for a while, threatening to "strongly respond", and lobbying for "immediate attention".
Such attempts to interfere in Hong Kong affairs and China's internal affairs would not scare the Chinese people and were doomed not to succeed, it said, without explicitly naming the United States.