evidence: The latter policy agreement defines U.S. relations with Hong Kong. Sections 102 and 103 of the law establish Hong Kong’s trade status as "fully autonomous from the People's Republic of China" and treat it as a separate territory when considering "import quota and certificates of origin." This policy has allowed for the development of separate U.S.-China and U.S.-Hong Kong trade relationships since 1997. [...] In addition to the collateral damage to Hong Kong, the president’s decision will also punish China. Under the Sino-British Joint Declaration, Hong Kong is a Chinese special administrative region (SAR) and has both an independent economy and independent executive, legislative, and judicial powers from mainland China. Like the United States and Hong Kong, China and Hong Kong have a dependent and interconnected relationship. Although Hong Kong is still partially autonomous from China, China utilizes Hong Kong’s financial and business status to move money in and out of China. This is crucial to China, as Beijing places significant restrictions on financial flows.. In addition, China uses Hong Kong as a "staging post" for foreign investment in Chinese companies because of its preferential terms and ability to move money more freely. Since 1997, Chinese companies have raised $335 billion on the Hong Kong stock exchange, roughly 80 percent of the total capital raised by Chinese companies in non-Chinese equity markets. By comparison, Chinese companies have raised $268 billion on the Shanghai stock exchange over the same period. About two-thirds of China’s inbound and outbound direct investment moves through Hong Kong.