As expected, Washington issued an advisory to U.S. businesses regarding the increased risks to their operations and activities in Hong Kong due to imposition of the new national security law last year.
The advisory underlined a series of risks including electronic surveillance without warrants; surrender of corporate and customer data to authorities; consequences of engaging sanctioned individuals or entities; and Chinese retaliation for complying with U.S. or international sanctions.
The advisory was jointly issued by the departments of State, Treasury, Commerce and Homeland Security.
«The policies which the [People’s Republic of China] government and the Government of Hong Kong have implemented undermine the legal and regulatory environment that is critical for individuals and businesses to operate freely and with legal certainty in Hong Kong,» a senior Biden administration official said.
Hong Kong Risk
Hong Kong is undergoing various legal changes following the imposition of the national security law last year.
Last month, China countered international sanctions by introducing an anti-sanctions law that would effectively make compliance to both regimes mutually exclusive.
More recently, the Hong Kong government proposed changes to privacy laws which triggered a major response from a tech industry group that expressed fears of the possibility that firms from the sector might «refrain from investing and offering their services in Hong Kong».
