American President Joe Biden announced that his administration will issue an advisory warning American businesses about the dangers of doing business with Hong Kong, as China tightens its grip on the semi-autonomous area.
“The situation is rapidly deteriorating in Hong Kong.” The Chinese government is not honoring its promise that it would deal with Hong Kong,” Biden stated at a Thursday press conference with Angela Merkel, the German Chancellor.
“And so it’s more of an advisory as what may happen… Hong Kong. According to a White House transcript, he said that it was as easy as that and as complex as that.
According to several news outlets, the advisory would be issued Friday. According to Reuters, the advisory could be issued alongside U.S. sanctions against seven Chinese officials who are trying to crack down on democracy in Hong Kong.
Hong Kong, Asia’s largest business hub, is now a contentious topic in the U.S.-China relations. The relationship has been unstable since a dispute about trade tariffs, technology competition, and the origins of the Covid-19 pandemic.
It is a former British colony, which was returned to Chinese control in 1997. It is managed under the “one country, two system” model that promises Hong Kong a high degree of autonomy.
National security law concerns
The U.S. and other countries, including the U.K., have criticized China’s attempts to undermine Hong Kong’s autonomy.
Beijing has changed Hong Kong’s electoral system and passed a controversial law on national security. Critics claim that these changes restrict personal freedoms and keep pro-democracy politicians from taking power.
Ned Price, spokesperson for the U.S. State Department, stated Tuesday that the “continuesto undermine” Hong Kong’s rule of law that is essential for a healthy business community.
Price stated that, “As a general matter,” he aimed to ensure businesses could operate in stable, predictable and fair regulatory environments all over the globe when Price was asked about his business advisory for Hong Kong.
“Rule of law risks that were once limited to mainland China are now a growing concern in Hong Kong. This is a matter of grave concern for us. It is a matter of grave concern for the American business community. He said that it is of great concern for the international business community.”
The national security law was implemented last year after months of protests for democracy in Hong Kong that occasionally turned violent. Chinese officials and the state media frequently claimed that “external forces” were behind the Hong Kong protests.
Beijing stated that the law was intended to prohibit secession, subversion, and foreign interference.
Reuters reported that more than 100 people were detained under the law in the first year after its implementation. Many of these were democratic politicians, activists and journalists. After authorities had frozen the assets of the company, the law made it unable to continue operations.