The latest US warning over heightened risks for companies doing business in Hong Kong will have a limited impact on the city, observers have said, arguing that businesspeople will prioritise “profits over politics”.
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Business leaders and commentators said on Sunday they also did not expect foreign companies to leave the city after Washington’s accusations that Hong Kong was serving as “significant transshipment point” for dodging United States sanctions against Russia.
A day earlier, the US state, treasury, commerce, agriculture and homeland security departments jointly updated the Hong Kong Business Advisory, warning the Safeguarding National Security Ordinance could pose “new and heightened risks” for companies and individuals operating in the city.
The legislation, which was required under Article 23 of the city’s Basic Law mini-constitution, took effect on March 23 and is the domestic counterpart of the national security law Beijing imposed in 2020.
The updated business advisory also labelled Hong Kong as one of the significant transshipment points for Russia to source dual-use goods – those with both civilian and military applications – for its armed forces and continued aggression against Ukraine.