US warns businesses about risks of doing business in Hong Kong

Washington warns US businesses operating in Hong Kong of financial and legal risks as Beijing continues to restrict political and economic freedoms in the city.

Washington warns that American companies are exposed to a number of risks due to China’s application of a national security law in Hong Kong. Photo: AFP

CNBC quoted the 9-page Hong Kong Business Advisory Report jointly compiled and published on July 16 by the US ministries of State, Finance, Trade, and Homeland Security and published on July 16, said the government. The US warned that US companies are facing a number of risks due to China’s application of a national security law in Hong Kong.

“Businesses face risks related to electronic surveillance without good reason and handing over data to authorities” as well as “is limited access to information,” the report stated.

“Beijing has discredited Hong Kong for responsible governance, transparency, and respect for individual liberties, and has broken its promise to maintain Hong Kong’s high degree of autonomy for 50 years,” Foreign Affairs said. US Secretary of State Antony Blinken said in a statement.

“For Beijing’s decisions that stifle Hong Kong people’s democratic aspirations in the last yearWe are taking action. Today, we send a clear message that the United States stands firmly on the side of the people of Hong Kong.”

The Biden administration also imposed US sanctions on seven Chinese officials for violating Hong Kong’s autonomy.

Earlier this week, the Biden administration also warned that American businesses with business ties to Xinjiang province (China) could face legal consequences, citing growing evidence of fraud. genocide and other human rights violations in this region.

Previously, Washington had publicly criticized the National Security Law passed by Beijing in June 2020 to limit Hong Kong’s autonomy and prohibit documents critical of the Chinese Communist Party. The move by China was described by then US Secretary of State Mike Pompeo as an attack “on the rights and freedoms of Hong Kong people”.

Soon after, former US President Donald Trump signed the bill into law and imposed sanctions on China in response to Beijing’s interference in Hong Kong’s autonomy. Mr. Trump also signed an executive order to end the special treatment that Hong Kong has long enjoyed.

“Hong Kong will now be treated like mainland China,” Trump said in a July 2020 speech from the Rose Garden at the White House.

“No special privileges, no special economic treatment, and no exports of sensitive technology,” Trump said. “Also, as you know, we have been imposing very large tariffs on China,” Trump added.

China’s Foreign Ministry “hit back” with a statement that Beijing would impose retaliatory sanctions on US individuals and entities.