Hong Kong warns removing U.S. special status is a ‘double-edged sword’

Hong Kong told the United States to keep out of the debate over national security legislation being imposed by China, and warned that withdrawal of the financial hub’s special status under U.S. law could backfire on the U.S. economy.

“Any sanctions are a double-edged sword that will not only harm the interests of Hong Kong but also significantly those of the U.S.,” Hong Kong’s pro-Beijing government said late on Thursday.

President Donald Trump is due to announce later on Friday his response to the Chinese parliament’s advancement this week of security legislation for Hong Kong, which many lawyers, diplomats and investors fear could erode the city’s freedoms.

Beijing says the new legislation, likely to come into force before September, will tackle secession, subversion, terrorism and foreign interference in the city. It could see Chinese intelligence agencies set up bases in Hong Kong.