"Hong Kong sparks a political uproar in Myanmar" 16 June 2022

Hong Kong has sparked a huge diplomatic row in Myanmar after being warned by Myanmar’s self-proclaimed “parallel” government for choosing to celebrate the 25th anniversary of the former British colony’s handover to China with a party held in a military-affiliated hotel that stands on land sanctioned by the West.

Opponents of the generals see the Hong Kong action as recognizing the military regime that took power in February 2021.

Following a growing backlash from civil society and activists, Myanmar’s “National Unity Government” (NUG), in a furious statement, lambasted the Hong Kong government and Yangon-based business body Myanmar-Hong Kong Chamber of Commerce and Industry (MHKCCI), the Thai Business Association of Myanmar and the Singaporean Association of Myanmar for legitimizing the Burmese junta.

Activists say this row is the latest to have raised questions about the practices of the Hong Kong government, the Hong Kong Trade Development Council and Hong Kong investors and regulators in the coup-torn Southeast Asian country.

The background

Hong Kong was the third-largest foreign investor in Myanmar prior to the coup according to the junta-controlled newspaper Global New Light of Myanmar. Hong Kong companies have investments in several sectors including electricity, power, real estate development, tourism, insurance and logistics.  Some of the investors were Chinese companies registering with their Hong Kong branches, such as the Bank of China.

Following Myanmar’s military coup in 2021, Hong Kong businesses met and greeted the junta and they have retained their links with the military since then. According to legal and Myanmar experts, this says as much about Myanmar’s risky environment for businesses as it does about changes to Hong Kong’s approach to doing business in the aftermath of the 2020 National Security Law. [...]

Earlier this month, the Hong Kong government arranged a business networking event – to celebrate the 25th year of the British handover of the Chinese special administrative region – to be held at the military-linked LOTTE hotel in Myanmar’s commercial capital. [...]

“We are particularly disappointed to see that the Hong Kong Economic and Trade Office, an official arm of the Government of Hong Kong, is sponsoring this event,” said the statement from the NUG’s Ministry of Planning, Finance and Investment.

The NUG branded the decision to do business and host an event with a military-affiliated hotel as “reprehensible.” [...]

The word from several diplomatic and business sources in Yangon is that the event has been postponed due to the backlash. Hong Kong Economic and Trade Office and MHKCCI have not replied to inquiries.