Biden to warn US companies about risks of operating in Hong Kong
The US government will this week warn companies of the increasing risks of doing business in Hong Kong as China imposes greater control on the financial hub according to reports.
Biden is said to be concerned that US companies would face threats from the Chinese government to gain access to data that foreign companies store in Hong Kong, according to a report in the Financial Times this morning.
The newly enacted anti-foreign sanctions law, allowing Beijing to impose sanctions against anyone that enables foreign penalties to be implemented against Chinese groups and officials, is also said to be of concern.
It comes amidst continuing tensions between the US and China, with relations showing little sign of warming despite the absence of former President Donald Trump’s bellicose rhetoric from the scene.
Last month, China’s National People’s Congress standing committee passed the law after a slew of sanctions against Beijing’s treatment of Uighurs, Tibetans and those in Hong Kong.
US President Joe Biden is expected to issue the warning and impose more sanctions against Chinese officials this week in response to China’s sweeping crackdown on the pro-democracy movement in Hong Kong.
The warning appears to have been triggered by the closure of Apple Daily, Hong Kong’s last bastion of Chinese-language free expression.
China said it opposed the US interference in its internal affairs related to Hong Kong.
Hong Kong basic law and relevant regulation clearly protect the interests of foreign investors, said Zhao Lijian, China’s foreign ministry spokesperson.
The US government will also update the warning alleged human rights abuses against Muslim Uyghurs in Xinjiang, which previously issued by the Trump administration.
The business advisory will underline legal risks that US companies face unless they ensure that their supply chains are not implicated in Xinjiang’s forced labour.
The decision will mark the US administration to issue a business advisory amid the worsening political situation in Hong Kong for the first time.