Biden says US will warn companies about situation in Hong Kong

US President Joe Biden has said his administration will issue an advisory warning US companies of the risks of doing business in Hong Kong as China tightens its grip on the semi-autonomous region.

“The situation in Hong Kong is deteriorating. And the Chinese government is failing to keep its commitment to do how it would deal … with Hong Kong,” Biden said at a press conference Thursday with German Chancellor Angela Merkel.

“And so it’s more of an opinion on what can happen to … Hong Kong. It’s that simple and as complicated as that,” he added, according to a transcript of his remarks at the White House.

Several news outlets have said the notice will be published on Friday. The business advice could be accompanied by US sanctions against seven Chinese officials for suppressing democracy in Hong Kong, Reuters reported, citing anonymous sources.

Hong Kong, a business hub in Asia, has become a contentious issue in US-China relations which have been fragile since a dispute over trade tariffs, competition over technology and the origin of the Covid-19 pandemic.

The city is a former British colony that returned to Chinese rule in 1997. It is governed by a “one country, two systems” framework that promises a “high degree of autonomy” to Hong Kong.

“Overall, we seek to ensure that businesses can operate in a stable, predictable and fair regulatory environment around the world,” Price said at a press briefing, when asked about business advice on Hong Kong.

“And rule of law risks that were previously confined to mainland China are now of increasing concern in Hong Kong. It is a big concern to us. It is a big concern to the business community. American. ”he added.

The implementation of the National Security Law last year followed months of pro-democracy protests in the city that at times turned violent. Chinese officials and state media have often said “outside forces” were behind the protests in Hong Kong.

Beijing said the law aims to prohibit secession, subversion of state power, terrorist activity and foreign interference.

More than 100 people have been arrested under the law in the first year of its implementation – including many Democratic politicians, activists, journalists and students, Reuters reported last month. Hong Kong’s pro-democracy Apple Daily was forced to shut down after authorities legally froze the company’s assets, leaving it with few resources to support its operations.