Snowden, a 29-year-old government contractor, is believed to be in the southern Chinese city after leaking details of a secret US Internet surveillance programme.
The former CIA technical assistant disclosed his role in a video interview from Hong Kong posted on the website of The Guardian newspaper yesterday, saying he chose the city as a refuge because of its "strong tradition of free speech".
But the treaty, signed with Beijing's "authorisation", gives the right to refusal should extradition impinge on the "defence, foreign affairs or essential public interest or policy" of China.
This effectively means Beijing, which maintains control over Hong Kong's foreign relations and defence policy, has a veto.
Snowden's revelations come just after US President Barack Obama and China's leader Xi Jinping held their first summit where they talked bluntly on issues such as cybersecurity but also forged a personal rapport.
"We have to look at the what are the interests involved. This is only a minor episode and it is not going to affect the big setting where China and the United States cooperate," the veteran China-watcher told AFP.
Hong Kong is a semi-autonomous territory with its own political and legal system that guarantees civil liberties not seen on the mainland.
And Snowden appears to have had this in mind when he chose to reveal his identity in the city.
The freewheeling city's strong culture of free protest was demonstrated last week, when tens of thousands marked the 24th anniversary of China's bloody Tiananmen Square crackdown.
The city is home to a lively and outspoken civil society network, and rights issues resonate with a population which chafes at Beijing's heavy hand.
Neither the US consulate nor the Hong Kong government would comment on the case or indicate if an extradition request has been lodged.
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