Prologue Journal

Following focus on security, Hong Kong should take ‘credible steps’ to maintain openness, EU envoy says

• prologu5
• 07/22/202407/22/2024

Hong Kong Free Press

Hong Kong should take “credible steps” to maintain its economic uniqueness and rule of law after focusing on security over the past four years, the European Union’s outgoing envoy has said.

Thomas Gnocchi, head of the European Union office to Hong Kong and Macau, was posted to Hong Kong in September 2020. At the time, the city was all but sealed off by restrictions in place to curb the spread of the Covid-19 pandemic, and political tensions were high in the wake of the enactment of a Beijing-imposed national security law in June following pro-democracy protests and unrest a year earlier.

In an interview with HKFP last Thursday, Gnocchi, who will complete his four-year term next month, said the pandemic remained top of the agenda during the first half of his tenure. The EU office had to coordinate with the diplomatic missions of its member states about the concerns of European companies and citizens in the city, he said.

That work led to Hong Kong recognising the EU’s digital Covid certificate in December 2022, he said, adding that it had facilitated the re-opening of economic activity and travel between Europe and the city.

But, he acknowledged that political developments in Hong Kong, such as issues relating to national security and changes to the city’s electoral systems, had been “quite challenging.”

“Many civil society organizations have had to cease to operate. Many independent media also have ceased operating and independent trade unions likewise,” he said, adding that he had seen “self-censorship in many areas.”

“I think in a nutshell, you could say that, whereas Hong Kong used to be an open society, it no longer is an open society,” Gnocchi said.

‘Overall environment’

Since the national security law came into force, politicians, journalists, and pro-democracy activists have been arrested and detained under the legislation. In the city’s largest national security case to date, 45 opposition figures were convicted of conspiring to subvert state power, while the high-profile trial of media tycoon Jimmy Lai, who has been accused of foreign collusion charges, is ongoing.

In March, Hong Kong’s opposition-free legislature passed further security legislation, known locally as Article 23, which authorities said was necessary to “plug loopholes” in the existing security law.

The two security laws have drawn international criticism, including from the EU. In a statement issued after the passage of Article 23, the EU said it was concerned about the “potential impact on the rights and freedoms of the people of Hong Kong.”

“This also raises questions about Hong Kong’s long-term attractiveness as an international business hub,” the statement read.

Asked to describe the trend of EU businesses operating in the city, Gnocchi said there had been a “slight decrease” of European companies in the city compared with before Covid-19. Hong Kong was still home to over 1,500 European companies, though, and the EU maintained a “very important footprint in the city economically,” he said.

“The important thing is that there are reassuring signals from the Hong Kong government. What is needed is perhaps to go beyond just saying that Hong Kong is open, but to take really credible steps in terms of enhancing economic development [and] also maintaining Hong Kong’s uniqueness on the economic side,” he said.

“There’s been a very strong focus on security over the past years,” he added, saying that companies would take the “overall environment” into account when considering whether to come to Hong Kong.

“Why not [focus] on other parts, for example, in the Basic Law, there’s… universal suffrage,” he said. The Basic Law, Hong Kong’s mini-constitution, stipulates that direct elections for the city’s chief executive and the legislature is the “ultimate aim.” Chief Executive John Lee said last month that such “political reform” was “not a priority” for his administration, which would instead focus on boosting the economy.

Gnocchi also suggested looking at “advances in terms of LGBT rights,” saying “this can be important for companies that want to make sure that there’s an environment in which all their employees feel at home.”

Hong Kong’s top court ruled in favour of recognising same-sex unions last September, though the government has yet to put forth a formal framework. It marked a victory for the LGBTQ community, which has long been forced to carve out rights from laws often ruled as discriminatory.

Explainer: LGBTQ rights in Hong Kong – breakthroughs and bitter court battles against discriminatory laws

Business groups in the city have often welcomed the court’s rulings, and increasingly make the case that the region’s leading economies should do more to promote diversity, according to Reuters.

Gnocchi, too, highlighted the role of the Judiciary in Hong Kong, saying that “continued confidence in the rule of law” was an important factor for business.

‘Ready for dialogue’

Since 2007, the Hong Kong government and the EU office in the city held an annual Structured Dialogue meeting, described as a platform for the two sides to “exchange views on a wide spectrum of subjects and foster closer cooperation.”

While there used to be a joint press release issued after each meeting, the last such statement was published in November 2019, according to government records.

Gnocchi acknowledged that the high-level talk had not been held since 2020, saying “there wasn’t an agreement on the agenda.” But he said the two sides had maintained formal communications.

“This was a time when there was also the pandemic, but throughout this period, we’ve maintained open channels of communication,” Gnocchi said. “On our side, in terms of an institutional dialogue, we would be ready to have such a dialogue.”

“But we would want such a dialogue to give us the opportunity to raise issues of concern to us, for example, in relation to national security issues. Or the effect they have on, for example, fundamental freedoms, or some of the electoral changes… that occurred,” he continued.

“And likewise, we would also be willing to address concerns which the Hong Kong government may have on its side.”

In response to enquiries from HKFP, a spokesperson from the city’s Commerce and Economic Development Bureau said on Sunday that the EU was “one of Hong Kong’s largest trading partners in good and services.”

“The two sides have established close trade relations over the years, and the Hong Kong Special Administrative Region Government has been maintaining close contact with the EU on trade and economic issues through different channels,” they added.

Mutual interest

Despite some differences, Gnocchi highlighted areas of mutual interest between the EU and Hong Kong, in particular on areas such as sustainability development and people-to-people exchanges.

“What stands out is the series of conferences we had on… sustainability and the environment,” he said.

Called GreenWay, the annual event was co-organised by the EU office, the European Chamber of Commerce in Hong Kong, the Hong Kong General Chamber of Commerce, and Invest Hong Kong, a government department.

Speaking at its third edition in April, the city’s leader Lee hailed the “constructive and cooperative spirit” of the forum, and what that may mean for advancing sustainability in Hong Kong.

“That was very positive,” Gnocchi said.

Meanwhile, Hong Kong has increasingly engaged in emerging markets such as Southeast Asia and the Middle East.

Lee is set to lead a delegation to Laos, Cambodia, and Vietnam this month – his third visit to member states of the Association of Southeast Asian Nations since he took office in 2022. The chief executive has yet to visit Europe during his tenure.

Gnocchi said it was “normal [for Hong Kong] to engage in those markets,” but he added that European companies could offer distinct advantages.

“If you look at, for example, one important area for future growth which is the whole sustainability, especially as Hong Kong embarks on big infrastructure projects, [and] wants to make these as sustainable as possible,” he said.

“This is just an example of where we have very good technology in terms of environmental solutions, which we can offer.”

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