Three people familiar with the plan told the media that President Biden is expected to brief US companies on the increasing risks of operating in Hong Kong this week. Financial Times In a report on Tuesday.
The warning is expected to be issued on Friday and will highlight concerns about a range of threats, including China’s ability to obtain data stored by foreign companies in Hong Kong. This will be the first time that the United States has issued a business consultation related to Hong Kong.
Other risks include a new law that allows Beijing to impose sanctions on individuals or entities that participate in the formulation or implementation of the United States and the European Union’s own sanctions against China. This will include companies that have interests in both the United States and China, and include penalties such as denying Chinese visas and preventing them from attempting to conduct business transactions with Chinese institutions.
“[The law] It is a warning to the United States: You should be worried. China will not tolerate this kind of treatment as easily as before,” said Wei Jianguo, the former deputy minister of commerce. According to NPR report.
The Financial Times noted that President Biden is also expected to update the warning issued by former President Donald Trump in 2020, adding that unless the company ensures that its supply chain does not involve forced labor in Xinjiang, it will emphasize the company’s legal risks.
Chinese Foreign Ministry spokesman Zhao Lijian said at a press conference in Beijing on Tuesday that the rights of foreign investors in Hong Kong are protected by Hong Kong law.
He said the warning was “a typical political manipulation and double standard” in Washington.
Since the passage of the new law in Hong Kong, these anticipated warnings may add to the already existing concerns of many companies.
According to the report of the Center for Strategic and International Studies, 78% of foreign companies in Hong Kong are concerned about the new national security law, and more than 35% of them are considering relocating capital, assets or operations.
Hong Kong Census and Statistics Department data Show that there are 282 US companies with headquarters in the region.
