The Joe Biden administration is reportedly preparing a business advisory for Hong Kong this week to warn U.S. companies about various threats ranging from data security to sanction-related risks.
The U.S. State Department is expected to flag concerns about Hong Kong to American companies – likely on Friday this week – according to a «Financial Times» report citing unnamed sources.
Concerns that will be raised include China’s ability to obtain data that foreign companies store in Hong Kong, a new law that enables retaliations against enforcement of foreign sanctions as well as the forced closure of Apple Daily, renowned media mogul Jimmy Lai’s newspaper.
This will mark the first time the U.S. has issued a business advisory about Hong Kong.
Additional Moves
The Biden administration is also considering other moves to accompany the business advisory including more sanctions against Chinese officials in Hong Kong.
Separately, they are also considering a policy that will allow Hong Kong citizens in the U.S. to stay in the country after visa expression if they face potential political persecution from returning to the city, though no conclusion has been made and no related announcements are expected to be made at the business advisory this week.
Doves and Hawks
Although some within the administration opposed the warning over concerns that it would discourage U.S. companies from operating in Hong Kong, more hawkish officials within successfully argued the need to convey the new risks.
The American Chamber of Commerce alone has over 1,200 members and 282 U.S. companies with regional headquarters based in the city, as of 2020.
