Photo: Nicholas Kamm/Pool/AFP via Getty Images

Secretary of State Mike Pompeo said in a statement Wednesday that he has certified to Congress that Hong Kong is no longer autonomous from China and does not warrant special treatment under U.S. law.

Why it matters: Revoking Hong Kong's special status would hasten its economic and financial decline, already set in motion by China's growing political grip on the city. The preferential status that the U.S. has long granted Hong Kong has made the city a top U.S. trading partner.

The big picture: The Chinese Communist Party last week unveiled a sweeping new security law that will criminalize sedition, foreign influence and secession in Hong Kong. The move and the subsequent reaction from the U.S. have put the once semi-autonomous city's status as one of Asia's largest financial hubs at risk.

  • The U.S. and Hong Kong do $67 billion in bilateral trade each year.
  • More than 1,300 U.S. companies have operations in Hong Kong, and around 80,000 U.S. citizens currently reside in the city.

The backstory: Hong Kong has operated under its own legal system since the U.K. returned the colony to China in 1997. People and businesses there have lived and operated far more freely than would be possible in mainland China. 

  • An extradition bill that threatened to undermine Hong Kong’s autonomy sparked massive protests last year. The new measures from Beijing could go much further, and activists fear the crackdown will render Hong Kong just another Chinese province.

What to watch: White House national security adviser Robert O'Brien said on NBC's "Meet the Press" on Sunday that if Pompeo is unable to certify Hong Kong's autonomy, the U.S. will impose sanctions on China and Hong Kong.

What he's saying:

"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. No reasonable person can assert today that Hong Kong maintains a high degree of autonomy from China, given facts on the ground.
Hong Kong and its dynamic, enterprising, and free people have flourished for decades as a bastion of liberty, and this decision gives me no pleasure. But sound policy making requires a recognition of reality. While the United States once hoped that free and prosperous Hong Kong would provide a model for authoritarian China, it is now clear that China is modeling Hong Kong after itself.
The United States stands with the people of Hong Kong as they struggle against the CCP’s increasing denial of the autonomy that they were promised."
— Mike Pompeo

Go deeper: Hong Kong's economic future hangs in the balance

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SenseTime, a Chinese developer of facial recognition technologies, is wrapping up a $1.5 billion funding round at a $10 billion valuation and is in talks to list on China’s STAR market, per Reuters.

Why it matters: This is the company’s first fundraise since being placed on a U.S. blacklist for alleged involvement in human rights abuses against Uyghur Muslims in China. It previously raised nearly $3 billion, including from U.S.-based firms like Fidelity, Glade Brook, Qualcomm Ventures, and Silver Lake Partners.

Jul 30, 2020 - World

Coronavirus bounces back where it had been knocked out

A glum harbor ride in Hong Kong. Photo: Anthony Wallace. AFP via Getty.

This week has seen a number of worrying headlines from countries initially viewed as major pandemic success stories.

Why it matters: After enormous sacrifices made to prevent or contain widespread outbreaks, countries are grappling with the challenge of preserving that success without daily life, and the economy, grinding to a halt once again.

Updated 2 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 3:30 p.m. ET: 18,614,542 — Total deaths: 702,330 — Total recoveries — 11,181,018Map.
  2. U.S.: Total confirmed cases as of 3:30 p.m. ET: 4,793,950 — Total deaths: 157,416 — Total recoveries: 1,528,979 — Total tests: 58,239,438Map.
  3. 2020: Joe Biden will no longer travel to Milwaukee for Democratic convention.
  4. Public health: Florida surpasses 500,000 confirmed casesModerna skirts disclosures of vaccine costs.
  5. Sports: The return of high school sports hangs in the balance — UConn becomes first FBS team to cancel football season.
  6. Education: Chicago Public Schools to begin school year fully remote.