HSBC, Standard Chartered press Sunak to ease proposed clampdown on China business
- Banks are lobbying ministers not to include China in the strictest risk category, arguing that would impede business and trigger negative publicity if they’re forced to declare it
- HSBC has been expanding in mainland China, as part of its pivot to Asia, while Standard Chartered is also among the biggest foreign banks operating in China
Rishi Sunak’s government faces pressure from banks including HSBC and Standard Chartered, as well as other major companies in the UK, to tone down proposed restrictions on doing business with China.
Their target is part of new British national security legislation, which aims to boost transparency of any dealings with nations posing a “potential risk to UK safety.” Executives are lobbying ministers not to include China in the strictest risk category, arguing that would impede business and trigger negative publicity if they’re forced to declare it, according to people familiar with the matter.
Even though the government has not made a final decision on how to designate China, there has already been a significant backlash among financial and other firms, the people said, asking for anonymity to discuss private lobbying efforts.
Both HSBC and Standard Chartered declined to comment. Sunak’s office also declined to comment, while a government official told Bloomberg that those lobbying for them are unlikely to get everything they’re asking for.
The question of how close to let businesses get to China is part of a major political tussle in the UK. Relations between London and Beijing have been strained over issues ranging from China’s approach to governing Hong Kong to mutual allegations of spying. UK officials privately blamed China this week for hacking the personal data of British military personnel, which Beijing denied.
