Biden Warns of the Risks of U.S. Companies Operating in Hong Kong | Business Wire Business and Economic News
Three people familiar with the matter said that the United States will warn American companies of the increasing risks of operating in Hong Kong this week as Washington seeks to increase pressure on Beijing to suppress Hong Kong’s financial center.
Two people familiar with the matter confirmed that these risks include the Chinese government’s ability to obtain data stored by foreign companies in Hong Kong. People familiar with the matter said that this warning was originally reported by the Financial Times and will appear in the form of a business consultation.
This warning from President Joe Biden’s government will highlight how Washington’s concerns about the former British colony have escalated since Beijing’s suppression of local democratic demonstrations in 2019.
The fourth US official said that Hong Kong’s national security measures passed last year undermined the rule of law, and the rule of law has enabled Hong Kong’s business community to prosper. US officials argued that the law weakened the boundary between China and Hong Kong. Since the handover of the colony by Britain in 1997, Hong Kong has been a “special administrative region” with independent management and economic systems.
People familiar with the matter said the United States is also concerned that a new law allows Beijing to retaliate against anyone who complies with anti-China sanctions. The White House declined to comment on this matter.
The US business advisory warning came after the Trump administration’s decision last year to abolish the special trade privileges granted to Hong Kong in recognition of China’s commitment to ensure Beijing’s “high degree of autonomy” over Hong Kong.
When Biden took office in January, US-China relations had become strained due to issues such as tariffs and the origin of the Covid-19 pandemic. Since then, relations have become more tense. Although Biden has met with colleagues from Europe, Russia, Japan and South Korea, he and Chinese President Xi Jinping have not yet met.
The President of the United States is expected to participate in a virtual meeting of the Asia-Pacific Economic Cooperation Forum on Friday, which includes China. According to two people familiar with the matter, Deputy Secretary of State Wendy Sherman plans to travel to Beijing later this month. Biden and Xi Jinping may meet in person during the G-20 meeting in Rome at the end of October.
Although the relationship between the world’s two largest economies has been eroded, trade between the United States and China continues to develop rapidly, driven by consumer spending recovered from the pandemic.
Chinese data show that so far this year, China’s merchandise exports to the United States have been running at a record speed, while US data show that this speed is much higher than in 2020, but lower than in previous years. At the same time, US shipments to China are at or near record levels.
In response to the report on Tuesday, China’s Ministry of Foreign Affairs reiterated its opposition to US interference in Hong Kong affairs. Zhao Lijian, a spokesperson for the Ministry of Commerce, told reporters that the city is more stable under the Public Security Law.
These remarks were issued before the United States updated its business advisory, warning U.S. companies of the risks associated with supply chains in the Xinjiang region, where China is accused of widespread violations of the human rights of Uyghurs.
Secretary of State Anthony Brinken said in a statement: “The United States will continue to promote accountability for China’s atrocities and other violations through the efforts of the entire government and in close coordination with the private sector and our allies and partners. To China People’s republic.
On Tuesday, China condemned Treasury Secretary Janet Yellen’s call for a “united front” against China, adding to tensions.
During a visit to Brussels earlier this week, Yellen revisited the partnership and the “rules-based international order” established after World War II—and then called on three countries that she believed endangered that order.
“We need to jointly respond to threats to the principles of openness, fair competition, transparency and accountability,” Yellen said in her speech to EU finance ministers scheduled for Monday.
“These challenges include China’s unfair economic practices, malicious behavior, and human rights violations; the Lukashenko regime’s continued atrocities in Belarus; and Russia’s continued and growing malicious behavior. Said in the sharp criticism.
“China strongly condemns and rejects Treasury Secretary Yellen’s remarks,” Zhao said at a regular press conference in Beijing on Tuesday.
According to people familiar with the matter, the latest developments occurred when White House officials discussed a proposal for a digital trade agreement covering the Indo-Pacific economies.
The details of the potential trade agreement-part of the Biden administration’s efforts to examine China’s influence in the region-are still being drafted, but the agreement may include Australia, Canada, Chile, Japan, Malaysia, New Zealand, Singapore, etc. In the country, an unnamed person said, because this process is not public.