Hong Kong's global financial center status is not only affected by Chinese security laws, but also influenced by US law.

When Britain on July 1, 1997 returned Hong Kong to China after more than 150 years of management, the principle of "one country, two regimes" was established as the foundation of the relationship between the special zone and the mainland.

Not only asserted in the Sino-British Joint Declaration, the principle of "one country, two regimes" is also clearly stated in the Basic Law, which is referred to as Hong Kong's "micro-constitution".

The chief executive is the most powerful person in Hong Kong, responsible for enforcing the Basic Law, signing bills and passing budgets, enacting laws, declaring their validity, and issuing decrees

Under the Basic Law, the Hong Kong courts "within the autonomy" of the special zone are responsible for determining whether the actions of the central government are legal.

Since Hong Kong was transferred, NPCSC has activated the right to interpret the law five times, mainly during the protests that took place in the special zone in 2016. Critics said that during the process of reinterpreting the law, NPCSC actually

Beijing also has the right to approve the appointment of a special zone chief and to control Hong Kong's defense and diplomatic matters.

However, this reality will likely change after the Chinese parliament passed a resolution to build security laws for Hong Kong.

Security laws could also be the basis for Chinese intelligence and security agencies to open offices and operate in Hong Kong Special Zone.

Observers say the new security law will significantly impact Hong Kong's autonomy and raise concerns about the extent of central government influence in the special zone.

Five years before Britain returned Hong Kong to China, US lawmakers agreed to continue to treat the territory as a separate entity from mainland China.

Under the 1992 US-Hong Kong Policy Act, the United States granted Hong Kong a special status, while maintaining a series of agreements that govern how the interaction between the United States and Hong Kong was applied before the time of handover.

From the US perspective, the biggest point separating Hong Kong from mainland China lies in economic and trade policies.

Following protests in Hong Kong last year, the US congress at the end of 2019 passed the Hong Kong Democracy and Human Rights Act, which requires the US Secretary of State to annually confirm that Hong Kong retains the right to

Hong Kong's special position is at risk of being revoked, when US Secretary of State Mike Pompeo said on May 27 that Hong Kong no longer enjoys autonomy due to new security laws.

If it is deprived of a special status by the United States, Hong Kong will no longer enjoy incentives such as the purchase of sensitive technologies, ensuring free exchange between the US dollar and Hong Kong dollars, negotiating trade agreements.

"This move will have a lot of impact, including the US expansion of the existing tariff barriers on mainland China to Hong Kong," said analyst Bonnie Glaser from the Center for Strategic Studies.

The abolition of Hong Kong's special situation will also make investments from companies in the special zone into the US more closely monitored.

Hong Kong is considered a special zone of China, but Hong Kong is "special only when the world treats it differently than the mainland," said David Webb, a former bank manager and investor in Hong Kong.

President Trump can change Hong Kong's special status through an executive order.

Removing Hong Kong's special status could help Trump look tougher for China ahead of the November presidential election. This is a strategy he has used to distract attention from

However, this move comes with certain political risks.

Removing Hong Kong's special status also carries the risk of making the special people lean toward Beijing.

But Washington can calculate that the damage caused will be "permeable" enough for Beijing to change its mind.

It has a complex but essential financial system for mainland Chinese companies and individuals, which restrict the amount of money that moves to and from the country due to Beijing's policy of tightly controlling the flow.