[Reporter Chen Yufu/Taipei Report] After the “Hong Kong version of the National Security Law” was implemented in Hong Kong in July, the CCP completely destroyed one country and two systems, turning Hong Kong from an international financial center into a province of China. According to reports, in response to changes in Hong Kong’s situation and in order to prevent the infiltration of “fake Hong Kong capital and real Chinese capital” into Taiwan, the Mainland Affairs Council plans to amend the law next year and amend Article 31 of the “Hong Kong-Macau Relations Regulations” to eliminate “Hong Kong capital equivalent to foreign capital” Regulations.
The implementation of the Hong Kong version of the National Security Law made Hong Kong a province of China
Article 31 of the current Hong Kong and Macao Regulations stipulates that “Hong Kong or Macao residents, legal persons, organizations or other institutions in the Taiwan area are permitted to use foreign investment and foreign exchange settlement regulations. Article 4, paragraph 3, investment by Hong Kong or Macau residents in the Taiwan area shall be permitted to comply with the relevant provisions of overseas Chinese return investment and foreign exchange settlement.”
Hong Kong may become the CCP’s infiltration base and affect country’s security
The government emphasized that in the past, Hong Kong residents, legal persons, organizations, or institutions invested in Taiwan in comparison with foreigners, would not be regarded as Chinese capital. However, the current situation in Hong Kong has changed drastically. The special status of one country, two systems has declined. As an international financial center, Hong Kong is completely deteriorating and it is very likely to become a base for the CCP to infiltrate Taiwan. Article 31 must be amended to change the “Hong Kong capital can be equivalent to foreign capital” regulations, otherwise it may have a major impact on national security.
Three directions of planning: Amend Article 31 of the Hong Kong and Macau Regulations
According to the official plan, there are three main directions for the amendment of Hong Kong and Macau Regulations: 1. Mainland Chinese people, legal persons or organizations invest in Hong Kong and Macao; 2. Hong Kong and Macao residents originally from Mainland China come to Taiwan to invest, or after investing in a third place outside Hong Kong and Macao they also came to Taiwan to apply for investment; 3. If the competent authority considers it necessary to review, for example, China has major substantive influence, or the main revenue comes from China, any Hong Kong investment involved in one of the above three elements can be regarded as Chinese investment and no longer equivalent to foreign investment. Strictly review the relevant regulations of capital coming to Taiwan.
The MAC also confirmed that the relevant amendments to Article 31 of the Hong Kong and Macau Regulations are currently under discussion.