US warns entrepreneurs of ‘growing risks’ of operating in Hong Kong

The United States on Friday warned its businessmen against “Increased risk” of operating in Hong Kong, a long-standing major international financial center, due to restrictions imposed by China.

Too imposed sanctions on seven Chinese officials in Hong Kong after saying Beijing had to pay the price of taxation a year ago strict security law in the former British colony reverted to China in 1997.

“Beijing has undermined Hong Kong’s reputation as an accountable, transparent government that respects individual freedoms and has broken its promise to keep Hong Kong’s high degree of autonomy unchanged for 50 years.”Secretary of State Antony Blinken said in a statement.

“Today we are sending a clear message that the United States strongly supports the Hong Kong people,” he added.

In an expected warning, Joe Biden’s government has warned of increasing risks – derived from security law – that “could negatively affect businesses and people operating in Hong Kong.”

The law, which prohibits subversion and other crimes against the state, was imposed in June 2020 after mass protests to demand the preservation of the fundamental rights promised by China to the territory before their return via London.

Businesses “should be aware of the potential reputational, regulatory, financial and, in some cases, legal risks associated with their operations in Hong Kong.”, he said.

However, the opinion recognized that Hong Kong “retains many economic distinctions“For the continent, including stricter intellectual property protections.

He highlighted the climate change implied by the new security law, including the arrest of US citizen John Clancey, a renowned human rights lawyer.

Under the law, dozens of people have been charged, including media mogul Jimmy Lai, former lawmakers and pro-democracy activists.

New sanctions

The United States also noted increased risks to data privacy as well as lack of transparency and access to information, highlighting the closure of the pro-democracy newspaper Apple Daily.

He also indicated that companies were more likely to be affected by American sanctions particularly targeted at banks if they work with Chinese police or other institutions seen as complicit in Hong Kong’s restrictions on autonomy.

In the sanctions this Friday, Blinken took into account the freezing of interests or property in the United States of seven deputy directors of the liaison office, which represents Beijing in the former British territory.

Washington, whose relations with China have deteriorated dramatically in recent years, had already imposed sanctions on senior officials, including Hong Kong CEO Carrie Lam, aligned with Beijing, which admitted the measures were causing it problems using its credit cards.

Xia Baolong, director of the Chinese Bureau of Hong Kong and Macao Affairs, said on Friday that the sanctions “will only evoke our anger.” It would be like “lifting a stone to let it fall heavily on its own feet.” The long river of history has proven countless times that victory must belong to the indomitable Chinese people!Xia said in a speech.

In a statement following the US warning, the Chinese Foreign Ministry’s commissioner’s office in Hong Kong said the US was trying to “”Cheat“To international companies. “Visionaries of the world will keep their eyes clear, won’t be fooled by American tricks, and make the right choice.“, He said.

Hong Kong has become one of the world’s leading shopping centers thanks to its business-friendly laws, respect for the rule of law, and proximity to the vast Chinese market. But Since the imposition of the new security law, an increasing number of international companies have announced their intention to leave or downsize in Hong Kong.

(Por Shaun Tandon – AFP)

Read on: