Pompeo says Hong Kong is no longer autonomous from China, jeopardizing billions of dollars in trade

Secretary of State Mike Pompeo said he certified to Congress Wednesday that hong kong no longer enjoys a high degree of autonomy from China -- a decision that could result in the loss of Hong Kong's special trading status with the US and threaten its standing as an international financial hub.

President Donald Trump and Congress will decide what actions to take as a result of the certification which comes at a time of increased tensions with Beijing as the two countries trade barbs over the covid19. Ending a special trading relationship that has existed for decades would carry costs for American business, rattle an already fragile global economy and hurt Hong Kong more than China, experts warn.

"The State Department is required by the Hong Kong Policy Act to assess the autonomy of the territory from China. After careful study of developments over the reporting period, I certified to Congress today that Hong Kong does not continue to warrant treatment under United States laws in the same manner as U.S. laws were applied to Hong Kong before July 1997," he said in a statement. "No reasonable person can assert today that Hong Kong maintains a high degree of autonomy from China, given facts on the ground."

Under the "One Country, Two Systems" policy, Hong Kong retains limited democracy and civil liberties despite being under Beijing's control.

Last year, Congress passed and Trump signed into law the Hong Kong Human Rights and Democracy Act in support of the region's pro-democracy protesters. Under that law, the US must annually verify to Congress that Hong Kong remains autonomous from China, or it risks losing its special status.

Pompeo's decision comes after Beijing introduced controversial NSL for Hong Kong -- legislation that he again denounced in Wednesday's statement as a "disastrous decision."LAST WEAK; the top US diplomat warned that the passage of the legislation would be a "death knell" for Hong Kong's autonomy.

The proposed law has pompt protest in Hong Kong and has been denounced internationally, with observers warning it could curtail many of the fundamental political freedoms and civil liberties guaranteed in the agreement handing the city over from British to Chinese rule in 1997.