Biden will warn US companies about the potential business risks of being in Hong Kong

 

Biden will warn US companies about the potential business risks of being in Hong Kong

The Biden administration is expected to issue a blanket warning to US companies about the risks of doing business in Hong Kong. 

US officials say the warning could be issued this week. President Joe Biden told reporters Thursday that the alarm would signal deteriorating free market conditions in Hong Kong, once one of Asia's major financial centers, and the potential for further erosion.

"The situation in the Chinese government is not living up to the commitment it made, and how it will deal with Hong Kong," Biden said. Kong, it's that complicated and straightforward that way."

The United States had decided under both the Trump and Biden administrations that Hong Kong no longer enjoys much of the autonomy from mainland China that Beijing pledged to respect for 50 years when it took control. The former British colony in 1997.

As such, Hong Kong no longer enjoys US preferential commerce and trade privileges, and some Hong Kong officials have been subjected to US sanctions for their actions in suppressing democracy.

"We know that the healthy business community depends on the rule of law, which Hong Kong's national security law continues to undermine," State Department spokesman Ned Price said on Tuesday.

Biden said we seek to ensure that companies are in stable, predictable, and fair regulatory environments worldwide. The rule of law risks previously limited to mainland China is now a growing concern in Hong Kong. It is of great concern to the international business community.

The new warning comes on similar advice issued earlier this week, reminding US companies of responsibility for potential sanctions if they engage in business with Chinese entities operating in the western region of Xinjiang.