Ip, a former immigration minister, agrees the fact that China does not permit dual nationality.

It does not recognise BN(O), or British citizenship acquired under the British Nationality Selection Scheme in the 1990s as nationality/citizenship. They are just “travel documents.”
Since China does not see BN(O) holders as British (national), you are, first and foremost, Chinese (national/citizen).

I do not see why China would agree that BN(O) holders, who acquire “citizenship” after 5+1 years under the BN(O) visa scheme, would become British (citizen).
Here is the problem. Ip cited China’s Nationality Law in the suggestion to strip the Chinese nationality, right of abode and to vote in Hong Kong.

But this may be flawed: If China does not recognise BN(O) holders’ British nationality in the first place, what is there to strip?
Simply put: To China, BN(O) holders are always, for eternity, Chinese citizens, unless they acquire a third citizenship via means that China recognises.

For example, marry a German, move to Germany, pass the German citizenship test. Then apply to renounce Chinese citizenship.
One can see the future for BN(O) holders by referring to the Sino-Portuguese Joint Declaration on Macau.

China agrees Macau residents can hold Portuguese “travel documents” (passports), but they are Chinese citizens regardless, at least on Chinese soil.
That was exactly the case of Kok Tsz-lun, one of the 12 Hongkongers detained in mainland China after a failed attempt to flee to Taiwan.

Kok holds a Portuguese passport, very likely due to his family’s Macau connections, but China sees him as a Chinese citizen without debate.
The saga of BN(O)’s nationality does not end at this generation. For instance, if BN(O) holders acquire British citizenship after 6 years and give birth to children in the UK, are they British or Chinese, in China’s eyes?

My educated guess would be: Chinese.
I am not joking. There were reports in 2016 about two Toronto-born second generation Hongkongers being denied Chinese visas, because Chinese still saw them as Chinese, and they could only apply for “travel permits” for Chinese citizens.

https://bit.ly/3q1rk1c 
Regina Ip’s plan technically does not reconcile with China’s nationality policies. But Chinese nationality laws are... flexible. I wouldn’t be surprised if Beijing could do something. But until then, to China, BN(O) holders are Chinese, and their children would be Chinese too.
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