Taiwan think tank advocates abolishing the foreign investment treatment of Hong Kong capital to set things right and prevent infiltration of fake Hong Kong capital

The Taiwan office in Hong Kong refused to sign the “one-China pledge” and was forced to withdraw, causing relations between Taiwan and Hong Kong to hit a freezing point. Some think-tank organizations in Taiwan believe that since the economies of Hong Kong and mainland China have gradually become integrated, it is not advisable for Taiwan to continue to give foreign investment-like preferences to Hong Kong capital, and suggest amending the Hong Kong-Macau Relations Ordinance to treat Hong Kong capital as Chinese capital and prevent infiltration of fake Hong Kong capital. In addition, scholars called on Taiwan to continue to provide asylum for Hong Kong people and to prepare early for the handling of political persecution of Taiwanese people in Hong Kong.

Civil society groups in Taiwan held a joint press conference on Tuesday (22) to support the decision of Taiwan personnel in Hong Kong to refuse to sign the “one-China pledge”.

Lai Chung-keung, the convener of the EDF think tank, said that Taiwan used to believe in the autonomy of Hong Kong and Macau and give Hong Kong capital the same treatment as foreign capital, but Hong Kong has been completely controlled by China, and Hong Kong capital has become a springboard for Chinese infiltration. He believes that it is no longer possible to use the provisions of Hong Kong capital compared to foreign investment.

Lai said: Since Hong Kong and mainland China have to be integrated economically, it is obviously very problematic for us to treat Hong Kong capital as comparable to foreign capital in general, instead of using Chinese capital to deal with it. And now between Hong Kong and China’s large corporate groups, in fact, each other cross-shareholding, strategic alliance, you have me, I have you, such a state of water and milk, we have no way to continue to use the “Hong Kong-Macau Relations Ordinance”, Article 31, Hong Kong capital is treated as ordinary foreign investment.

Lai suggested amending the “Hong Kong and Macau Ordinance”. Since the Taiwan Legislative Yuan is currently in recess, he will liaise with the legislators during the summer, and believes that he will be able to propose a co-signed amendment when the legislature convenes in September.

Lai said: to determine whether a fund is Chinese capital, involving cross-border investigation of evidence difficulties, and the evidence is on the side of the investor, the investor himself does not take out, the competent authorities to prove that a certain investment is actually behind the Chinese capital, there are practical difficulties. The draft by the People’s Republic of China gives investors a higher burden of proof and the obligation of honesty, the future of Hong Kong funds to be compared to foreign investment in Taiwan, to continue to go through the green channel, must meet: cut off, registration, declaration of the three elements.

Wu Jiemin, a researcher at the Institute of Social Studies of the Academia Sinica, expressed affirmation and support for the Taiwanese authorities’ refusal to sign the “one-China pledge”.

Wu said: “The Chinese Communist Party is trying to force Taiwan to the edge of a cliff. If Taiwan’s personnel in Hong Kong sign the “one-China pledge” in order to stay in Hong Kong, the result will be a self-denigration of Taiwan’s national status, which means recognizing the People’s Republic of China as Taiwan’s suzerain state. This would not only infringe on Taiwan’s sovereignty, but would also change the status quo in the Taiwan Strait, which would have a direct impact on the global geopolitical balance. Therefore, Taiwan can never give in on this point. If Taiwan gives in one more step, it will be surrendering to the Chinese Communist regime; if Taiwan gives in one more step, it will push Taiwan from the global democratic camp to the totalitarian group.

Wu Jiemin said that in handling affairs with Hong Kong, the government should not only guard its sovereignty, but also safeguard human rights.

Wu said: Taiwan’s guardianship of Hong Kong’s politically persecuted exiles, Taiwan has been doing for a while, we must resolutely persist, absolutely no soft hands and soft feet. Therefore, Taiwan’s assistance to Hong Kong, in the last year, the private sector first, the official in the last year, the Land Commission set up under the Hong Kong and Macao Affairs Department exchange office, to give Hong Kong people to Taiwan humanitarian assistance, this work must ask the government to continue to adhere to, continue to improve. At the same time, we must call on Taiwan’s Legislative Yuan to expeditiously pass Article 60 of the Hong Kong and Macao Affairs Ordinance, one of the provisions on democracy and human rights in Hong Kong.

The convenor of the Sovereign Defense and Diplomacy Group of the EDF think tank, Mr. Song Cheng’en, pointed out that under the pressure of Beijing and the Hong Kong government, Taiwan’s units in Hong Kong may eventually be withdrawn, and there is a chance that Taiwanese people in Hong Kong will be politically persecuted.

Song also raised the question of whether the U.S. Consulate General could be asked to seek asylum if a Taiwanese citizen was prosecuted in Hong Kong. Although there is no answer for the time being, the Taiwan government should make overall considerations and plan early to try to reach agreements with other countries to provide protection for the Taiwanese people in Hong Kong.