<Anchor>

Wednesday's friendly economy, reporter Kwon Aeri. Reporter Kwon said China would eventually pass the Hong Kong National Security Law and deprive the US of the special status it had given to Hong Kong. The United States is hated by China, but it is sometimes confusing as to what to take from Hong Kong, which is facing China. First, let me explain what this special status is.

<Reporter>

Yes. Hong Kong is actually China. However, it is an area promised to have autonomy and separate administration. It was said to maintain the two systems of one country and one country.

Before the end of the 90s when the British returned Hong Kong to China, they struggled with how to re-establish relations with Hong Kong, where the world returns to China.

At that time, what the US chose was to make the law altogether to provide Hong Kong with mainland China and other special treatments.

It will be China, but Hong Kong will not treat China as long as it maintains autonomy. Visas, visas, investments, and other benefits from China.

For example, in the midst of conflict between the United States and the United States, the United States stepped up tariffs on Chinese goods last year. Hong Kong is automatically removed. Hong Kong is China, too, but I didn't have to say that the tariff, Hong Kong, is excluded.

American and global financial companies and world capitals are actively moving in Asia based in Hong Kong. It would be good if Hong Kong continued to play the same role it played in the 20th century in Asia, so we have made and maintained such a measure.

It is said that the Chinese government will deprive Hong Kong of special status if the United States can no longer give preference to Hong Kong if it wants to strengthen its control over Hong Kong.

<Anchor> In the

end, Hong Kong will be treated like China, but it seems to be about this. What are you going to do specifically?

<Reporter>

First, a declarative statement came out. We need to look at how destructive and practical steps will follow.

The US Department of Commerce's statement pointed out that it could not continue to give Hong Kong the privilege of exporting, which was different from China, and that there is a risk that US sensitive technologies will flow into China. Pompeo also says he will stop exporting defense supplies to Hong Kong and not export technologies that can be used simultaneously by civilians and the military.

It is a declaration that it has been difficult to do so in Hong Kong, since it has been freely sent to Hong Kong.

First, exports of weapons will stop. However, last year, the US exports of weapons to Hong Kong amounted to only 1.7 billion won. It's like a police armament, and it's actually insignificant.

However, even among private things, this product should not contain high-tech technology that connects to security. It's already been said in the United States that exports of cameras and computer processors to Hong Kong are also trying to be restricted.

In other words,'the sensitive technology that cannot be freely exported to Hong Kong' and the sensitive technology that is worried about going to China will depend on the future atmosphere.

Importantly, the United States did not mention sanctions related to financial services or exchange-related sanctions, such as visa issuance, which are key to Hong Kong's role. I was only saying that we were considering measures to further restrict Hong Kong's special status in the future.

It has brought a declarative level of luck to China, which enforces Hong Kong security laws, to ban Hong Kong's special status. Specifically, it is analyzed with an attitude to decide while looking at what to do more.

<Anchor>

Export restrictions that Japan doesn't solve for us can be achieved. (It's such a system.) Anyway, you might be curious about the impact on us anyway.

<Reporter> The

prospect is that there will be no specific damage right now. However, the intensifying conflict between the United States and China is a burden for us to seek economic recovery after corona.

Although Hong Kong is the fourth largest country to export. If you look at the export side, it is almost all of you going through Hong Kong to China.

This structure has been strengthened because going through Hong Kong is more convenient in terms of procedure and tax than direct export to China.

If Hong Kong's special status is further deprived, and this process is inconvenient, we will have to search for a direct export plan, but it is hard to see that it will have a big impact on our economy.

Rather, it is now a more burdensome time in many ways for the US-China conflict to be intensified. I am concerned that a double layer of burden can be created when I have to deal with a hit with a corona.

In the long run, there is already some talk about whether it would be advantageous for us if the status of Hong Kong's financial hub is shaking. It is true that it is in a more favorable position.

First of all, we need to respond one by one, watching how the sparks of the US-China conflict surrounding Hong Kong have hit us.