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US plans to rollback special status may erode Hong Kong’s startup ecosystem

For two months, the people of Hong Kong waited in suspense after China’s legislature approved a new national defence ordinance. The legislation’s details were finally made public yesterday and almost immediately went into effect. As many Hong kong citizens residents dreaded, the broadly written new law generates Beijing lengthy authority over the Special Administrative Region and is well positioned to sharply curtail civil liberties.

In response, the United Mood began the first measures to end the special status it is provided to Hong kong citizens, with the Commerce and State Departments suspending export license exceptions for feelings U.S. engineering and blocking the export of defense equipment.

Much remains uncertain. Hong kong citizens had also previously enjoyed many discretions that do not exist in mainland China, under the” one country, two systems ” principle put into locate after the United Kingdom returned limit to China. After announcing the brand-new plans, the U.S. government said further restrictions are being considered. Under special status, Hong kong citizens had privileges including lower market tariffs and a separate customs and immigration designation from mainland China, but now the future of those is unclear.

Equally opaque is how the corrosion of special status and the new national security regulation will impact Hong Kong’s startups in the future. In conversations with TechCrunch, investors and benefactors indicates that they trust the region’s ecosystem is resilient, partly because many companies volunteer online services — especially financial services — and has established operations in other groceries. But they are also keeping an eye on further developments and preparing for the possibility that key talent will want to relocate to other countries.

Read more: feedproxy.google.com

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