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U.S. warns companies about doing business in Hong Kong

Washington – The Biden administration issued a full warning to US companies on Friday about the risks of doing business in Hong Kong as China continues to limit political and economic freedom within its territory.

Four Cabinet agencies, the Department of State, the Ministry of Finance, the Department of Commerce, and the Department of Homeland Security, are talking about changes in Hong Kong’s legal situation and the potential for reputational and legal damage to doing business in Hong Kong. We have issued a 9-page recommendation to warn you.

At the same time, the Treasury has announced sanctions on seven Chinese officials for violating the terms of the 2020 Hong Kong Autonomy Act, which requires other penalties for those who participated in asset freezes and crackdowns.

President Joe Biden previewed the new recommendation Thursday and told White House reporters that Hong Kong’s business environment is “deteriorating” and could worsen.

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“Companies, individuals, and others, including academic institutions, research service providers, and investors who operate or are in contact with authorized individuals or organizations in Hong Kong, are aware of changes in Hong Kong laws and regulations. Must be done, “said the notice. , “Risks and considerations of companies doing business in Hong Kong”.

“This new legal situation … could adversely affect businesses and individuals doing business in Hong Kong. As a result of these changes, they have potential reputation, regulation, finance, and in some cases Hong Kong. You need to be aware of the legal risks associated with your business in Hong Kong. “

Secretary of State Antony Blinken emphasized the recommendation in a statement commemorating the first anniversary of China’s enactment of the new National Security Act, stating that it had a serious negative impact on Hong Kong.

Blinken said business risks include “potential lack of electronic surveillance and data privacy, reduced access to information, and potential retaliation against companies that comply with U.S. sanctions.” ..

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“Business Advisory outlines these new risks to inform individuals and businesses in the United States and encourages awareness and due diligence,” he said.

Meanwhile, the American Chamber of Commerce in Hong Kong responded to the recommendation, acknowledging that the business environment was “more complex and difficult,” but said it would continue its work.

“We are here to help our members overcome these challenges and risks while seizing the opportunity to do business in the region,” he said in a statement. “Hong Kong continues to be an important and vibrant one that facilitates east-west trade and financial flows,” he added.

Since the enactment of the National Security Act, the United States under the Trump and Biden administrations no longer has significant autonomy from mainland China that Hong Kong has promised to respect for 50 years when Beijing takes over control of the former Britain. I decided that I didn’t enjoy it. 1997 colony.

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As a result, Hong Kong no longer enjoys US preferential trade and commercial privileges, and certain Hong Kong officials are subject to US sanctions for actions to crack down on democracy.

China is one of the rare areas where the Biden administration is heavily obsessed with Trump’s policies.

Following a similar recommendation issued earlier this week, Friday’s warning deals with a Chinese company operating in the western Xinjiang Uygur Autonomous Region, where China has been accused of widespread crackdowns on Uighur Muslims and other minorities. Reminded US companies about possible sanctions liability in case. ..

The seven officers subject to sanctions are Chen Dong, He Jin, Lu Shin Nin, Kiu Hong, Tan Thieniu, Yang Jampin, and In Zhonghwa. All seven are deputy directors of the Hong Kong SAR Central People’s Government Liaison Office, an agency that has accused the United States of repeatedly weakening Hong Kong’s autonomy.

Copyright 2021 AP communication. all rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.

U.S. warns companies about doing business in Hong Kong

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