US Warns Companies Of New Risks In Hong Kong

Via press release from the State Department:

On July 16, the U.S. Department of State, along with the U.S. Department of the Treasury, the U.S. Department of Commerce, and the U.S. Department of Homeland Security, issued a business advisory to caution U.S. businesses about emerging risks to their operations and activities in Hong Kong.

Many of these risks stem from the implementation of the Law of the People’s Republic of China (PRC) on Safeguarding National Security in the Hong Kong Special Administrative Region, also known as the National Security Law (NSL), and other recent legislative changes.

Developments over the last year in Hong Kong present clear operational, financial, legal, and reputational risks for multinational firms. This business advisory provides companies with information that can assist them in making informed business decisions and properly assessing risk.

The policies which the PRC government and the Government of Hong Kong have implemented undermine the legal and regulatory environment that is critical for individuals and businesses to operate freely and with legal certainty in Hong Kong.

Businesses should be aware that the risks faced in mainland China are now increasingly present in Hong Kong. The National Security Law and actions taken by PRC and Hong Kong authorities may negatively affect their staff, finances, legal compliance, reputation, and operations.