The US says it will no longer regard Hong Kong as autonomous from mainland China as more protests have erupted in the city.
Secretary of State Mike Pompeo made the announcement on behalf of the Trump Administration to the US Congress, setting the stage for the US to withdraw preferential trade and financial status the former British colony has enjoyed since it reverted to Chinese rule in 1997.
"Hong Kong does not continue to warrant treatment under United States laws in the same manner as US laws were applied to Hong Kong before July 1997," Mr Pompeo said in a statement on Wednesday.
US Secretary of State Mike Pompeo. Source: AFP
Mr Pompeo's announcement was not accompanied by a revocation of any specific privileges, but comes amid calls for the US and others to react against Beijing's move to impose Chinese national security laws over the territory.
"Beijing's disastrous decision is only the latest in a series of actions that fundamentally undermine Hong Kong's autonomy and freedoms and China's own promises to the Hong Kong people under the Sino-British Joint Declaration, a UN-filed international treaty," he said.
"No reasonable person can assert today that Hong Kong maintains a high degree of autonomy from China, given facts on the ground."
Protests resume
The US announcement came as new protests erupted in Hong Kong, with police making 360 arrests as thousands of people took to the streets in anger .
In the heart of the financial district, riot police fired pepper pellets to disperse the crowds.
Elsewhere police rounded up groups of suspected protesters, making them sit on sidewalks before searching their belongings.
Late into Wednesday evening, protesters were still cramming footpaths, chanting for full democracy and for Hong Kong to seek independence from China, saying this is now "the only way out".
Riot police round up a group of protesters. Source: LightRocket
A heavy police presence around the Legislative Council had earlier deterred protesters from disrupting a debate of a bill that would criminalise disrespect of the Chinese national anthem.
The bill is expected to be passed into law next month.
Angry over perceived threats to the semi-autonomous city's freedoms, people of all ages rallied.
Some were dressed in black, some were wearing office clothes or school uniforms and some were hiding their faces beneath open umbrellas in scenes reminiscent of the unrest that shook Hong Kong last year.
"Although you're afraid inside your heart, you need to speak out," said Chang, 29, a clerk and protester dressed in black with a helmet respirator and goggles in her backpack.
Many shops, banks and offices closed early.
The latest protests follow the Chinese government's proposal for national security legislation aimed at tackling secession, subversion and terrorism in Hong Kong.
The planned laws could see Chinese intelligence agencies set up bases in Hong Kong.
A women arguing with police during the protests. Source: AP
The proposal, unveiled in Beijing last week, triggered the first large street protests in Hong Kong for months on Sunday, with police firing tear gas and water cannons.
The US, EU, Britain and others have expressed concern about the legislation, widely seen as a possible turning point for China's freest city and one of the world's main financial hubs.
But Chinese authorities and the Beijing-backed government in Hong Kong say there is no threat to the city's high degree of autonomy and the new security law would be tightly focused.
"It's for the long-term stability of Hong Kong and China, it won't affect the freedom of assembly and speech and it won't affect the city's status as a financial centre," Hong Kong chief secretary Matthew Cheung told reporters.
Protesters block a Hong Kong street during a demonstration against the national security law. Source: AP
US President Donald Trump, already at odds with Beijing over trade and the novel coronavirus pandemic, said on Tuesday Washington would this week announce a strong response to the planned legislation.
China responded by saying it would take necessary countermeasures to any foreign interference.
Taiwan President Tsai Ing-wen pledged humanitarian relief for any Hong Kong people fleeing to the self-ruled island, though she gave no specifics.
Riot police guard arrested protester. Source: AP
Asian shares slipped over the rising tension between the US and China.
