President Joe Biden will warn U.S. companies this week about the risks they face when doing business in Hong Kong. Insiders of the US government tell the British business newspaper Financial Times.
This includes the possibility of China acquiring data stored by foreign companies in Hong Kong. There is also a new law that allows Beijing to take action against individuals or companies that comply with US sanctions against China. Assets can be confiscated, for example, by these Chinese punitive measures.
According to the Financial Times, the White House believes that companies do not take the risks of trading in Hong Kong seriously. The United States has imposed sanctions on China over security forces’ crackdown on pro-democracy protesters and a controversial security law in Hong Kong.
In addition, the United States is expected to issue a new warning about the legal risks faced by companies with supplies from China’s Xinjiang region. Former President Donald Trump last year warned US companies not to buy products from Xinjiang, which could have been used for forced labor by the region’s Uyghur Muslim minority.
China, in response to the Financial Times report, said the United States should not interfere in domestic affairs in Hong Kong. Beijing also denies that Uyghurs are engaged in forced labor in Xinjiang.
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