China is reportedly planning to impose anti-sanction laws in Hong Kong, further increasing compliance risks over mutual exclusivity with the U.S. legal regime.
The National People's Congress (NPC) Standing Committee – China’s top legislative body – will make the addition to Hong Kong's Basic Law next month, according to multiple local media reports citing unnamed sources.
Separately, state-run media Xinhua New Agency said that the NPC would consider adding national law to the annexes of both Hong Kong and Macau’s charter during a closed-door session from August 17-20 without specifiying the legislation.
China Anti-Sanction Law
China’s anti-sanction law, passed last month, gives the government broad powers – such as asset seizure and visa denial against those who formulate or implement sanctions against the country – as well as individuals and companies the power to sue others over discriminatory practices in Chinese courts.
If passed, banks will have to review their internal policies which have reportedly been broadly compliant with previously imposed U.S. sanctions under the Donald Trump administration. Numerous Hong Kong and mainland China officials have been sanctioned with various restrictions such as blocks to financial services.
