Biden admin warns that businesses in Hong Kong will be subject to China’s new national security law.
Friday’s warning by the Biden administration to U.S. companies in Hong Kong was that they would be subject to all laws of the territory, including China’s recent national security law.
The advisory, which was nine pages long, was issued by the Departments of State, Treasury, Commerce and Homeland Security. It alerted businesses to the possible risks associated with doing business in Hong Kong.
According to the advisory, businesses are at risk from electronic surveillance without warrants and the disclosure of customer and corporate data to authorities.
Individuals and companies should be aware about the possible consequences of engaging in sanctioned persons or entities. They should also be warned of the reputational, economic and legal risks associated with maintaining a presence or staff here.
It stated that foreign nationals including one U.S citizen have been detained under the national security law.
On Thursday, President Joe Biden presented the advisory to reporters at the White House. He stated that the business climate in Hong Kong was “deteriorating” but could get worse.
Both the Trump and Biden administrations have determined that Hong Kong has lost the autonomy that Beijing promised to give for 50 years after it took control of the former British colony.
An advisory was issued earlier this week reminding American companies of potential sanctions liability if they do business with Chinese entities operating in the western Xinjiang area, where China is accused widespread repression against Uyghur Muslims.
