Beijing will stop recognising British National (Overseas) passports as travel and identification documents from Sunday, and may retaliate further against Britain’s offer of a pathway to citizenship for 5.4 million eligible Hongkongers, South China Morning Post reported.

China’s first official move against Britain over the issue is widely seen as more symbolic than immediately impactful, as Hongkongers do not need BN(O) passports to travel in and out of the city or the country, but it could signal tougher action to come, the newspaper reported.

Foreign ministry spokesman Zhao Lijian also made the official comment on the issue and said, "In disregard of China's solemn position and the fact that it has been 24 years since Hong Kong returned to the motherland, the British side blatantly violated its commitment, formulated the so-called 'bespoke' policy of abode and citizenship in the UK for BNOs, and continued to expand its scope of application.

"By trying to turn many Hong Kong residents into 'second-class citizens' in the UK, the British side has discarded the mutual understanding on the BNO between China and the UK."

"The 'BNO' today is nothing like what it was. The UK's move grossly violates China's sovereignty, interferes in Hong Kong affairs and China's internal affairs, and runs counter to international law and basic norms governing international relations.

"China deplores and firmly rejects this. Starting from January 31, China will no longer recognize the BNO passport as a valid travel document or for identification, and we reserve the right to take further actions," the official said.

Hong Kong, a former British colony, was handed over to China in 1997, and the Basic Law preserves its autonomy as a Special Administrative Region under the principle of “one country, two systems”.