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You Have Been Warned! U.S. To Alert Its Companies In Hong Kong

American companies are expected to receive a warning Wednesday from the Biden administration about the growing risks of operating in Hong Kong, sources familiar with the matter said.

The US government is is expected to sketch How the Chinese government can access data stored in Hong Kong. The warning, first reported by the Financial Times, will be sent to US companies as business advice, US government sources said.

The advice is part of the Biden administration’s latest attempt to put pressure on China over its crackdown on Hong Kong’s democracy among other disagreements. The US has repeatedly warned of business problems in Hong Kong – mired in pro-democracy protests since 2019.

US officials say the national security law drafted by China, passed last year, is weakening the rule of law. Officials say the current political climate is no longer conducive to the prosperity of businesses in Hong Kong.

Officials said Hong Kong is considered a “Special Administrative Region” with separate economic and political systems. The sources said the US is concerned the law allows China to individually target companies that comply with US-imposed sanctions.

The business adviser’s warning will expand after the previous administration’s move to withdraw special trade privileges for Hong Kong. The Donald Trump administration said the privileges were granted only after China promised to give the city a “high degree of autonomy”.

US President Joe Biden will attend a virtual meeting of the Asia-Pacific Economic Cooperation forum on Friday. Representatives of China will attend. It is not yet clear whether Hong Kong and US companies are involved in the discussions.

Relations between the US and China have become strained after years of reciprocal sanctions and a recent debate over the origins of the Covid-19 pandemic.

The Biden administration has yet to rule out the possibility that the pandemic could be caused by a laboratory leak – a stance that has angered China. Both countries have also been at odds over China’s recent assertion of territorial claims in the South China Sea and over America’s continued accusations of genocide in China’s Xinjiang region.

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https://www.btimesonline.com/articles/150379/20210714/american-companies-to-receive-business-advisory-detailing-hong-kong-risks.htm

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