Sanctions extension will hurt US business interests, Hong Kong warns Washington

Hong Kong authorities have warned the United States that extending sanctions against local and mainland Chinese officials will “ultimately undermine” American business interests, citing the country’s long-standing trade surplus with the city.

The city government on Thursday slammed US President Joe Biden over his earlier signing of the US National Defence Authorization Act, annual legislation that finances and directs policy for the country’s military and security agencies for the coming financial year.

The bill includes provisions not directly linked to defence, such as the extension of sanctions against local and mainland former and current officials for another five years under the 2019 Hong Kong Human Rights and Democracy Act.

The Hong Kong government said the decision would damage American business interests, citing the about US$270 billion trade surplus the country had enjoyed with the city over the past decade and the presence of about 1,390 US companies in the city.

“If the US insists on its acts, it will ultimately undermine the mutually beneficial relations between Hong Kong and the US, harming the interests of the US and its companies,” the spokesman said in a statement.

Biden signed the US$895 billion National Defence Authorization Act on Monday, which included extending sanctions against Chief Executive John Lee Ka-chiu, who served as the city’s security minister amid the 2019 protests, and then leader Carrie Lam Cheng Yuet-ngor.

The legislation prohibits individuals, US banks and companies from dealing with those targeted by the sanctions.