Sino-UK Relations 'will Worsen After BN(O) Move'

A vice-president of Beijing's top think-tank on Hong Kong, Lau Siu-kai, said Beijing will likely retaliate against the UK's financial and economic interests, following the announcement allowing Hong Kong residents to claim British citizenship.

Lau, from the Chinese Association of Hong Kong and Macau Studies, said given how Britain needs stronger ties with China after Brexit, bilateral relations will now suffer on the economic front.

He cited action taken by the British government "...not only in relation to the BN(O) [situation] but also prohibiting Huawei from doing business in the UK".

"I cannot anticipate what Beijing is going to do, but obviously Beijing would do something like change their British financial and commercial interests," he said, adding that for example, it's unlikely that Beijing would continue trying to develop London as a major overseas renminbi centre.

He told RTHK's Damon Pang that he doesn't think the Hong Kong economy will be affected by the UK's new policy because there won't be "a very large number of people" who will take up the BN(O) scheme and emigrate to Britain.

"Hong Kong will always import talents from abroad to take up the place left behind by the emigrants," Lau said.

Lau's comments come after the UK government announced BN(O) passport holders in Hong Kong and those eligible for one can begin applying for a visa to the UK from next year, paving the way for citizenship.

The Chinese embassy in London hit back, saying the move "severely violated (Britain's) own commitments, seriously interfered with the internal affairs of China and seriously violated international law and the basic norms of international relations".