BIG IDEA | ‘It is the first time a US administration has issued a business advisory in relation to Hong Kong.’

“In the face of Beijing’s decisions over the past year that have stifled the democratic aspirations of people in Hong Kong, we are taking action,” said Antony Blinken, US secretary of state. “Today we send a clear message that the US resolutely stands with Hong Kongers.”  

‘The Biden administration on Friday warned US companies that they faced serious and escalating risks operating in Hong Kong, as the Chinese government increasingly cracks down on freedoms in the financial hub.’

• ‘The US issued a “business advisory” about threats ranging from China’s ability to gain access to data stored on servers in Hong Kong to a new Chinese law that allows sanctions to be imposed on anyone who helps foreign nations enforce sanctions against Chinese companies and officials.’
• ‘ “This new legal landscape . . . could adversely affect businesses and individuals operating in Hong Kong,” the advisory said. “They should be aware of potential reputational, regulatory, financial, and in certain cases legal risks associated with their Hong Kong operations.” ’

‘It is the first time a US administration has issued a business advisory in relation to Hong Kong.’

• ‘ “In the face of Beijing’s decisions over the past year that have stifled the democratic aspirations of people in Hong Kong, we are taking action,” said Antony Blinken, US secretary of state. “Today we send a clear message that the US resolutely stands with Hong Kongers.” ’

‘Joe Biden also imposed sanctions on seven senior Chinese officials who serve in Beijing’s representative office in Hong Kong.’

‘The Hong Kong government said the advisory was a malicious attempt to damage the city’s reputation as a business hub.’

• ‘ “Any attempt to intervene in Hong Kong affairs and contain China’s development is doomed to fail,” China’s representative office in Hong Kong added. “Chinese people will deal a head-on blow to the reckless behaviour of the US.” ’

‘Kurt Tong, a China expert at the Asia Group who was US consul-general in Hong Kong until 2019, said the move was a “mixture of denunciatory political rhetoric aimed at China” and consular advice to businesses.’

• ‘ “Non-Chinese firms in Hong Kong will make their own decisions, after balancing the city’s unique business opportunities with their best estimates of the increased legal and operational and reputational risks,” he said. “For now, it appears that most foreign investors see the benefits of Hong Kong as outweighing the risks.” ’
• ‘Tong said the top worry for many foreign firms in Hong Kong centred on whether the judiciary would remain independent.’