On July 16, 2021, the US Departments of State, Treasury, Commerce and Homeland Security issued the Hong Kong Business Advisory to highlight the risks that US companies operating in Hong Kong might face following recent actions undertaken by the Governments of the People’s Republic of China and the Hong Kong Special Administrative Region. Changes in Hong Kong’s laws and regulations, including the imposition of the Law of the PRC on Safeguarding National Security in the Hong Kong SAR (National Security Law or NSL) could have reputational, regulatory, financial and legal risks for businesses and individuals operating in Hong Kong.
While Hong Kong is a separate legal jurisdiction from the PRC that maintains separate currency and regulatory structures including free trade, low tariffs and well-protected property ownership and intellectual property rights, the National Security Law imposed on Hong Kong in June 2020 has significantly reduced Hong Kong’s autonomy, resulting in heightened risks related to data privacy, censorship, restrictions on access to critical business information, and, in the case of foreign nationals, an increased risk of arrest or detention. The advisory addresses each of these risks and also warns that businesses operating in Hong Kong might face retaliation for complying with sanctions imposed by the US and other countries.
Department of Treasury Recent Action | Hong Kong Business Advisory